What will happen in 2023? Threats to the air safety infrastructure will continue. A vanguard pilot deal at Delta Air Lines will bring relative labor peace. United Airlines will create buzz but 'bleisure' analysis may fade..
“Airlines have been upgrading radar altimeters to improve their ability to tolerate interference,” the Air Line Pilots Association said in a recent press release. “The FAA is strongly urging airlines to complete the updates by July 2023, so that aviation safety can be assured when mobile wireless goes to full power at that time.” But it’s not so much the details that matter as the concept that safety is now negotiable.
“I have always thought there to be no good result from corporations weighing in publicly on politics,” Mann said. “Why upset your customers and employees by taking a stand?”Whatever United’s politics, it has been a clear stock market leader, and Cowenanalyst Helane Becker calls it her top pick for 2023. United shares closed Monday at $45.03, down 1% YTD. Meanwhile, Spirit was down 46%, with American down 25%,Delta down 11%, Southwest down 10% and the S&P 500 Index down 17%.
In October, Southwest CEO Robert Jordan said he sees the changes but ”What I think we want to be careful with is trying to decide that this is forever.” And consultant Mann said, “I will be shocked if 'bleisure' makes it into Webster's dictionary.”Most pilot groups have been in contract talks for years. Talks have moved slowly partly because in pattern bargaining, every participant watches every other participant. Nobody wants to be first.
“Assuming an endorsement by Delta’s MEC, we anticipate AAL, UAL & LUV pilot negotiations to meaningfully accelerate, potentially removing the entirety of the industry pilot overhang by mid-year 2023, and thereby significantly improving the market’s labor cost confidence for at least the next four years,” JP Morgan analyst Jamie Baker wrote on Monday.Generally, U.S.
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