Cranky Weekly Review Presented by San Francisco Bay Oakland International Airport: Boeing is Back, Baby, and Lufthansa’s Italian Roadblock

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Boeing Machinists End Strike

Striking IAM members at Boeing voted by a 59-41 margin to accept the most recent offer from the company and return to work making airplanes and putting an end to the costliest labor action in the United States in a quarter century.

The approval of the deal comes just two weeks after striking workers voted by a nearly two-thirds majority to reject management’s alleged “final” offer. The 33,000 workers who had been off the job for nearly two months returned on Wednesday and will see an immediate raise of 13%. That will be followed by a 9% raise in each of the next two years, and 7% in the fourth and final year of the agreement. Workers can opt to forgo the final increase and just take a plane home with them if they prefer.

Workers also receive an immediate ratification bonus of $12,000, part of which is eligible to be put into 401(k) accounts.

The wages Boeing pays its frontline workers make up less than 10% of the cost of producing an airplane, although while they were on strike their salaries made up 0% of the cost.

Italy to Lufthansa on ITA Sale: “Not So Fast”

If you thought Lufthansa’s purchase of a minority stake in Alitalia 12.0 ITA Airways from the Italian government would go smoothly, well, you don’t know Italy.

The Italian government and Lufthansa are embroiled in a disagreement over €10 million of the €325 million Lufthansa agreed to pay for 41% of the carrier. Lufthansa is insisting on the €10 million reduction in the sale price as compensation for what it was forced to give up to satisfy European competition watchdogs — including slots at Milan/Linate in northern Italy.

The Italians offered to throw in a few Fiats to sweeten the deal, but they say that will not undersell their flag carrier, which leaves the two at a potential impasse with time running out. The European Commission has a deadline of Monday for all paperwork to be submitted in the case, so a resolution is going to need to come fast between LH and the Italian government, or they risk losing the deal… which, for Lufthansa, may not be the worst outcome ever, unlike ITA which is the worst airline ever.

Former Spirit CEO Ben Baldanza Passes Away

Longtime industry executive and former CEO of Spirit Ben Baldanza died Tuesday at the age of 62 following a battle with ALS.

Baldanza is one of the pioneers of the modern-day ULCC, leaving an indelible mark on Spirit and other like minded airlines from his time as its top executive from 2005-2016. After retiring from Spirit, he stayed active in the industry, serving on JetBlue’s board of directors and serving as an adjunct professor teaching a course on Airline Economics at George Mason University.

He started his career at American in 1986, serving in roles in both finance and revenue management. He then made stops at Northwest, Continental, and US Airways before paying the executive initiation fee at Spirit to take over as CEO. When he arrived at Spirit, the low-cost carrier was losing nearly $80 million annually, and he led the carrier to embrace the low-cost lifestyle, cutting fares and charging for everything.

He hosted the Airlines Confidential podcast with Scott McCartney until this summer when ALS forced him to step back.

Paris 2024 Games Left Olympic-Sized Hole in Air France’s Finances

Air France took it on the chin to the tune of $172 million less in revenue during Q3, as it says the Olympic Games caused tourists who normally flock to Paris in the summer to avoid the City of Light, choosing alternate summer vacation plans — mostly to Newark or Tucson. And for a lucky few — both.

The carrier said there was less inbound traffic to its Paris/CDG hub and less travel out of the country for French residents who postponed or canceled trip to take in the games. Despite the summer swoon, the carrier will make a one-time €50 million payment to its staff to reward its strong operational performance during the Olympics. The strong performance it’s referencing mostly took place at CDG and other airports throughout the world, as Air France employees were not reported to have won any medals during the games themselves.

Overall, Air France-KLM as a whole brought in €9 billion in revenue for the quarter on €1.2 billion profit. The revenue includes ticket revenue, cargo ops, ancillary fees, and around €3 billion in on-board sales of Phryges-related items.

Viva’s Rebrand Gives it New Life

Viva Aerobus is introducing a dramatic rebrand, as it changes its name to just “Viva,” and introduces a new logo and aircraft livery. The carrier will also introduce the spectacularly Spanglish-named “Flex-Sí-bilidad” policy, a conglomeration of 11 features that give customers more control over their travel plans.

The new logo displays the word “viva” in green with an upside down heart to its right as it replaces the completely different logo the airline had previously which also had the word “viva” written in green, but with “aerobus” displayed underneath it in red. The change will be jarring for most of us, but we will get through this together.

The new Flex-SÍ-bilidad program is as revolutionary as the branding change, as it brings the carrier forward from 2011, with features such as allowing customers to make flight changes in the app, correct name or birthday errors made at booking without paying an additional fee, and cancelling a flight within 24 hours of booking for a refund. It also includes some less traditional options including the ability to sell your ticket back to Viva which seems fraught with problems, but you do you, Viva.

• Air Belgium is in talks with investors. So is the guy who gives out stock tips at the shoeshine stand in New York’s Penn Station.
• Air Canada is going to fly more to places other than Canada next summer.
• Air New Zealand is the latest airline to really grasp what its customers wants — the carrier is launching its own wine label.
• airBaltic‘s codeshare with Lufthansa is growing.
• BA will cede the London/Heathrow – Dallas/Fort Worth route to its JV partner American next summer, suspending the service on its own metal.
• Batik Air Malaysia fans will rest easier tonight knowing their favorite airline now has an interline agreement with flyDubai.
• Emirates is flying to Edinburgh for the first time since 2020.
• Ethiopian took delivery of Africa’s first A350-1000.
• IAG ended Q3 up €1.4 Billion.
• Iberia‘s first commercial flight on an A321XLR operated from Madrid to Paris Wednesday morning.
• Israir is in a New York state of mind. Well, New Jersey, but close enough.
• Jet Airways is likely to be liquidated. How this hasn’t already happened is beyond us.
• LATAM finished the third quarter with a $301 million profit.
• Pakistan International Airlines is for sale, but the Pakistani government says it will only consider “respectable” offers. The irony is not lost on us.
• Porter‘s extensive operation to Toronto’s alternate airport isn’t enough for the carrier, but fear not, it says its planned flying to Montreal/Metropolitan Airport (YHU) may begin next year.
• Ryanair is adding two winter destinations to Porto.
• Spirit passengers and staff at New York/LGA were surprised Wednesday when a Basic Economy passenger from a legacy carrier showed up at a Spirit gate looking to change his flight.
• Sunrise Airways is hoping to see the dawn of a third AOC.
• TAP‘s sale to IAG isn’t looking as likely as it once was.
• Virgin Atlantic is returning to Mexico.
• Wizz Air took a loss in court.
• ZIPAIR is adding capacity to Bangkok.