This week’s featured link:
CANADA JETLINES LTD. and : CANADA JETLINES OPERATIONS LTD. v. DAVID NEELEMAN, DGN CORPORATION : and BREEZE AVIATION GROUP, INC. – United States District Court
Jetlines says David Neeleman stole Lukas Johnson — then Jetlines’s CEO — and called banks to prevent Jetlines from getting funding. It sounds like an airline that’s giving up on actually flying and is trying to recoup its money through legal means. But it also sounds like it might have a case.
Two for the Road:
South African Airways Cuts Deal with Unions, Future Remains Uncertain – Airways Mag
South African belongs in the awful airline hall of fame with Air India, Aerolineas Argentinas, and of course, Alitalia. This deal just adds to the legend. The airline wanted to get serious about layoffs, and it took a strike to try to right the ship. What happened? It caved and gave the unions a nearly 6 percent raise retroactive to earlier this year PLUS it agreed to no layoffs. Unreal.
Air Shuttle Service Float Partners with Commuter Carrier – Los Angeles Business Journal
Traffic in LA is so bad that this company thinks it can make a living off helping rich people avoid it. I don’t know much about the company, but I’m certainly skeptical.
9 comments on “3 Links I Love: Jetlines Sues, South African Screws (Itself), Float to Cruise”
I hope you’re having a very nice Thanksgiving here in Phoenix.
Desert – Indeed I am, though the tornado warning that woke me up at 4 in the morning wasn’t entirely welcome. Happy Thanksgiving to you.
I was in Gilbert wit in laws and totally slept through it. Definitely unusual weather this last weekend.
Aerolfot definitely belongs in the “Worst Airlines Hall of Fame”
Back to the future with regard to FLOAT? Mid to late 60s’ saw the rise of the old Skymark Aviation & Golden West Airlines in the then burgeoning commuter airline sector of the industry. Looks like FLOAT will serve many of the same airports that those old carriers once did.
Just happened to use an on-line inflation calculator to project a common published airfare – $10.00 o/w – offered by Golden West on many of its routes in 1969. In 2018 dollars, the amount equates to $69.25.
Good luck to them.
Re Neeleman/Johnson… never a good idea to do side business on a computer owned or controlled by one’s employer.
Should be interesting to follow that case.
South African Airways has been a mess for many years, however the current restructuring plan is the first real attempt that has a chance of succeeding in years. In a country where inflation is routinely in the 5-10% range, a wage increase of 5.9% is hardly “unreal;” rather, it’s pretty standard and is less than what the unions wanted (in fact, it’s what the company initially offered pre-strike). The lack of layoffs is not sustainable in the longterm and certainly feels like rewarding bad behaviour, but the strike would have gone on indefinitely without caving in, so it was really the only short-term option to see if that restructuring plan can start to yield anything.
SAA was, like so many state enterprises, run into the ground by inept leadership and corruption during Zuma’s 10 years, but its history before that was far more encouraging. It’s worth a shot, if for no other reason, because the government simply can’t afford to let it sink. So much of SAA’s debt is guaranteed by the government that it means bankruptcy won’t wipe it away and the government simply can’t afford it.
Many issues that have contributed to the SAA mess are similar to those that plague Alitalia, Aerolineas Argentinas, Air India, et al. Many aren’t. Context helps.
Have you ever thought about doing a post about airlines that are almost competing with Alitalia for the worst airline? Because SAA is certainly up there. Plus I think it would be fun to compare some of the worst and why. Maybe like a top 10?
Pilotaaron – Well, it’s pretty straightforward… just look for government supported airlines that have no mandate to make money. The list is topped by Alitalia, Aerolineas Argentinas, and Air India. South African is making a run here, and so is Thai.