This week’s featured link:
Lufthansa says not interested in taking over Alitalia – Financial Express
The worst airline ever continues to live up to its name. Just about to run out of cash, the airline turned to its unions to agree to a plan that would include big cuts. The unions said no. So now Alitalia will go into reorganization once again. What’s going to happen? Well, apparently they’re going to sell the airline to the highest bidder. Lufthansa, one of the likely buyers, says it’s out. That’s good news for us… I say we all get together and bid.
Here’s the plan. I put in 1 penny to purchase Alitalia. You guys all band together to pay off the debt. Sound good? I know a lot of people think Alitalia is going away, but I don’t believe it. It might be Alitalia 1,384,000.0, but I can’t imagine the Italian pride allowing the airline to finally disappear.
Two for the road:
A letter to American employees from Doug Parker and Robert Isom on team member pay – American Airlines
If you work on the front lines, you heard cries of joy earlier this week. If you work on Wall St, you heard cries of pain. American has decided to ratchet up pay for pilots and flight attendants to meet the industry average even though contracts aren’t amendable for several years. Labor is happy (or should be). Meanwhile Wall St is livid that a billion dollars is going away from the people who own the airline and toward labor instead.
If this is starting to feel like the year 2000 to you, you’re not alone. Every time there’s a raise, it just means it’s money that gets clawed back in the next downturn. I know the industry is different now, but I’m not convinced it’s different enough to support these wage levels.
United Airlines President: Leaving New York’s JFK ‘Was the Wrong Decision’ – Skift
Scott Kirby isn’t happy about United’s decision to walk away from JFK and consolidate transcon service at Newark instead. Even though the JFK service was said to lose money, it was really important to some very big accounts, and now United is paying the price. Though rumors have swirled about United going back into JFK, don’t count on it. There’s no room at the inn, and even if United did go back, it would be hard for it to win back the business it’s already lost.