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American Jobs At Risk In The Airline Business

Steve Wallach, 05.23.09, 12:00 AM EDT
It's up to Congress and Obama to regulate the antitrust immunity.

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There has never been a more pressing time for the Obama administration to step in to prevent even more middle-class American jobs from being outsourced. However, with its tentative approval of antitrust immunity for Continental Airlines to join the Star Alliance, the Department of Transportation has opened the door for more job losses and pay cuts for American workers.
Since the Star Alliance was formed in 1997, it has expanded from the original six founding airlines (Air Canada, Lufthansa, SAS, Thai, Varig and United) to more than 20 airlines. The Alliance's annual revenues have grown to $141 billion, and it now carries half a billion passengers each year. There's no doubt that it's been tremendously profitable for the Star Alliance carriers, and, arguably, it has made international travel more of a "seamless" experience for passengers, but these gains have come at a high cost to U.S. airline employees.
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The U.S. employees of the Star Alliance (United, US Airways ( LCC - news - people ) and now, potentially, Continental), however, have not seen any of the benefits of the Alliance. On the contrary: the Alliance has expedited the outsourcing of American jobs, and most, if not all, of the increases in flying have gone to overseas carriers.
In 1997, for example, United Airlines served 39 international destinations, flew 151 wide-body aircraft to mostly international destinations and employed 92,000 workers. Now, 12 years later, United has cut its international destinations by 23%, shed 40 wide-body international aircraft and reduced its workforce by 46%. There could not be a starker illustration of the Star Alliance's effect on American jobs and the losses will continue with no end in sight.
Because the Star Alliance is a cartel, it could not operate in the U.S. without antitrust immunity. In granting immunity, the Department of Transportation said the Alliance expansion will "create substantial new service options and fare benefits for customers," and is "consistent with the public interest, will produce public benefits and will not substantially reduce competition." Clearly, the DOT did not take the loss of American jobs into its consideration of what constitutes the "public interest. "
United is proposing another means of off-shoring American jobs beginning in March 2010, this time in a joint venture with Aer Lingus. By 2012, if left unregulated, both carriers intend to form another airline, not based in the U.S., flying international routes from Washington-Dulles to various European destinations. If the DOT approves this new joint venture, it will mean a further loss of United jobs as both Aer Lingus and United have already stated that they will be employing new-hire employees from neither carrier for this venture.
Any approvals for antitrust immunity and expanded alliances should contain explicit provisions to protect the jobs of U.S. workers. In the case of the Star Alliance, these protections should require the participating carriers that wish to extract revenue on routes that they share with their Alliance partners to do so in a way that does not put their employees at risk.
It's time for Congress and the Obama administration to seize the opportunity to demonstrate their true commitment to American workers by insisting that immunity from antitrust provisions will not lead to greater job losses for American workers.
Steve Wallach is the master chairman of the United Master Executive Council, Air Line Pilots Association
 
While the attempt at outsourcing does suck, let's think about this in terms of pay. *Most* overseas pilot jobs pay more and have more perks associated with them than U.S. Pilot jobs. If the outsourcing results in a higher paying job available overseas, then I'll be more than happy to become Capt. Jugdish...
 
If Bush was still around (couldn't happen due to 2 terms) or any other Republican in the White House, this would already be a done deal. McCain was always "pro passenger", and wanted the best deals for consumers, even if it meant bringing in Aeroflot to fly from LAS to LAX. We at least have a fighting chance with Obama in office, since he is more pro-labor, and has to listen to the unions, which will be fighting anything like this. Obama still wants a second term, and he will have to listen and protect if he wants a chance.

Bye Bye--General Lee
 
If Bush was still around (couldn't happen due to 2 terms) or any other Republican in the White House, this would already be a done deal. McCain was always "pro passenger", and wanted the best deals for consumers, even if it meant bringing in Aeroflot to fly from LAS to LAX. We at least have a fighting chance with Obama in office, since he is more pro-labor, and has to listen to the unions, which will be fighting anything like this. Obama still wants a second term, and he will have to listen and protect if he wants a chance.

Bye Bye--General Lee

You are even a bigger f-ing retard than I had imagined... Obama doesn't give a goose poop about anything other than reading a teleprompter without screwing it all up-plus screwing over the "evil rich" (a category which YOU fall into BTW.)

You wait and see how much he will "listen to the unions." You forget that airline employees are all "rich" and only work "part-time." Obama is far more committed to class warfare than he is to protecting the cushy jobs of "rich" airline employees!

-Seriously, General-What the hell is it in your DNA that makes you shamelessly suckup to whomever is in charge at the moment, then trash whomever is no longer in charge?

-You truly are a worold-class super-retard!!!!
 
You are even a bigger f-ing retard than I had imagined... Obama doesn't give a goose poop about anything other than reading a teleprompter without screwing it all up-plus screwing over the "evil rich" (a category which YOU fall into BTW.)

You wait and see how much he will "listen to the unions." You forget that airline employees are all "rich" and only work "part-time." Obama is far more committed to class warfare than he is to protecting the cushy jobs of "rich" airline employees!

-Seriously, General-What the hell is it in your DNA that makes you shamelessly suckup to whomever is in charge at the moment, then trash whomever is no longer in charge?

-You truly are a worold-class super-retard!!!!

The people working at Terminal C in ATL at Wendy's make more money than you do pal. Thank gawd you can still do your Fry job at McRonalds....

And Bush did a terrible job, and McCain would have been worse. Where were those weapons of mass destruction again? Yeah, I thought so, probably in the back of your pants after you drink the left over fry grease from your "fry station" at your other job. You, Sean Hanity, and Rush Limbaugh can kiss my grits!


Bye Bye--General Lee
 
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