The Right Coast
August 31, 2005
By Mike Rappaport
Hedge Fund Guy at Mahalanobis says:
"Air travel has never been greater, but US airline companies continue to hemmorage. Not all, mainly the legacy airlines that have significant unions (United, US Airways, American, Delta, Northwest). The new ones, unencumbered by unions, pay their workers less, and more importantly are more efficient with their workers because they don't have unions micromanaging work rules. For example JetBlue and Southwest pilots average about 50% more flying time than for United, Delta and Northwest. The nonunion airlines are booming, grabbing market share and hiring new workers. The union airlines are all near bankruptcy."