The Main Squawk: Southwest gets a mighty big Christmas present
After long drawn-out negotiations, there’s finally a tentative agreement on the table at Southwest, and it’s phenomenal. In addition to an immediate 29% pay increase, the deal secures higher pay for pilots on reserve, significant enhancements to the Company’s retirement packages, increased per diem, and a 2.5% annual bonus until a new contract is reached in future negotiations. By all metrics, SWAPA killed it with this one.
Next up for Southwest is for its pilots to formally approve the deal. Sources are saying pilots have two choices on the ballot: 1) to distribute the $12 billion value of the contract amongst the entire pilot roster based on Trips for Pay, or 2) to Powerball it up and pull one lucky name out of a hat who gets the whole $12 billion and everyone else is on their own.
Southwest reached a settlement with the Feds last week over its scheduling crisis of 2022 where it will pay $140 million to Uncle Sam. This comes in addition to the $600 million they shelled out to customers last year for making them spend an extra week with their in-laws after those poor souls just barely made it through the holidays with them. Southwest CEO Bob Jordan is even offering up pinkie-promises in an effort to back the airline’s performance this year, unless you’re flying through Denver, Chicago, Baltimore, or basically anywhere else it might snow this week.
Alaska is raising bag fees to better align itself with Hawaiian. The rumor is that the SeaTac-based carrier blew its budget for its Christmas Party this year, so raising fees will help bridge that gap. Wall Street will expect other airlines to follow suit and too increase bag fees as we make out way into 2024, with exception of the place where Bags Fly Free™.
Air France made a mistake of publishing erroneous Business Class fares online at dirt cheap rates. They honored the rates for people who could speak at least one sentence in the carrier’s native tongue, and compensated everyone else with one-day old baguettes.
Delta is reconfiguring some of its A350s with more Premium seating and plans to fly them out of DTW. All passengers displaced from Main Cabin 3 will be forced to crowd in the Aft Lav.
Airbus was awarded a sweet Christmas present from Turkish, including 150 A320neos, seventy A350s (five of which will be ordered as freighters).
American flight attendants put their strike on hold, signaling that they may be close to nearing an agreement.
Ethiopian entered into an agreement with Citibank to buy five new airplanes.
EVA pilots are voting to authorize a strike.
Iberia re-launching service to Tokyo (after suspending service during the pandemic).
LATAM is getting five new Dreamliners.
Lufthansa is ordering forty new Boeing 737 MAX aircraft, with an option for sixty additional aircraft. The Cologne-based airline is also ordering forty Airbus A220s, with an option for twenty more or forty A320neos, depending on their mood.
Singapore is launching service at London-Gatwick.
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