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The heads of the congressional Monopoly-Busters Caucus warned that a future administration could "break up" a merger of United and American Airlines if it is approved by Trump regulators.
The Democratic leaders of the congressional Monopoly-Busters Caucus said Wednesday that a recently floated megamerger of two of the largest airlines in the US—United and American—would be so awful for consumers that it shouldn't even be considered, let alone approved by federal regulators.
"The rumored scheme to merge United and American should never see the light of day," said Reps. Pramila Jayapal (D-Wash.), Chris Deluzio (D-Pa.), Pat Ryan (D-NY), and Angie Craig (D-Minn.). "This disaster of a merger would be illegal, consolidating more than a third of the US airline market, eliminating direct competitors on hundreds of routes across the country, and creating a near-monopoly on flights in many cities."
The House Democrats went on to say that if a United-American merger is formally proposed and approved by President Donald Trump's regulators, a future Democratic administration could break up the resulting airline behemoth.
"In a time when too many Americans just struggle to even go on vacation, much less afford their housing, childcare, and healthcare, these airline executives should not mistake the corruption of this administration as a green light to break the law," the lawmakers said. "They should also remember that there is no statute of limitations on breaking up bad deals."
"In case it is not crystal clear," they added, "that is absolutely a threat to break up this merger should it ever happen."
The lawmakers' statement came a day after Bloomberg reported that United Airlines (UA) CEO Scott Kirby floated the idea of merging his company with American Airlines (AA) "directly" to Trump during a meeting in late February. Kirby also pitched the merger idea to other "senior government officials," the outlet noted, without providing names.
"A combination would create the largest airline on the planet," Bloomberg observed. "As a result, any merger between the two aviation giants would pose serious antitrust concerns and likely face significant backlash from consumers, politicians and rival US airlines."
"That the United CEO raised the idea of a merger with American directly with Donald Trump suggests he thinks he might obtain direct approval from the president for a merger that would otherwise never be permitted.”
Contrary to claims of a "surging MAGA antitrust movement" in the early days of Trump's second White House term, the president's administration has proven friendly to corporate merger efforts, from Paramount-Skydance to UnitedHealth-Amedisys and more. Reuters reported Wednesday that "investment banking fees—earned from advising on mergers and acquisitions and underwriting deals—surged an average of 27% across six major US banks in the first quarter, with record dealmaking a key profit driver."
William McGee, senior fellow for aviation and travel at the American Economic Liberties Project, said Wednesday that "thanks to the federal preemption clause in the 1978 Airline Deregulation Act, states have virtually no airline oversight."
"So effectively the only sheriffs overseeing airlines are [the Department of Transportation] and [Department of Justice]," McGee observed. "Under Trump they've been derelict in policing competition."
"To be clear: A UA-AA merger is absurd," McGee added. "A monolith mega-mega-carrier operating 4 of every 10 domestic flights is so harmful that anyone favoring it doesn't understand airlines. Or is a regulator eager to please a president who 'loves to see big deals.'"
Robert Weissman, co-president of the consumer advocacy group Public Citizen, said in a statement Tuesday that "it would be easy to dismiss the prospect of such a merger passing antitrust scrutiny—except that the Trump Department of Justice seems content to bless dangerously high levels of corporate concentration, so long as administration cronies, allies, or flatterers are in charge of corporate goliath."
"That the United CEO raised the idea of a merger with American directly with Donald Trump," Weissman added, "suggests he thinks he might obtain direct approval from the president for a merger that would otherwise never be permitted.”
"We have flight attendants who are struggling to make ends meet while our CEOs are on private jets," said one union leader. "We want some respect shown in the contract."
Hoping to leverage the looming Labor Day travel rush to secure better pay and working conditions, unionized United Airlines flight attendants on Wednesday voted overwhelmingly in favor of authorizing a strike if management fails to meet their demands.
The United flight attendants—who are represented by the Association of Flight Attendants-CWA (AFA)—voted 99.99%, with 90.21% of members participating, to greenlight a work stoppage unless they win concessions including a double-digit raise, more schedule flexibility, improved work rules, job security, and retirement benefits.
"We deserve an industry-leading contract. Our strike vote shows we're ready to do whatever it takes to reach the contract we deserve," said Ken Diaz, president of the United chapter of AFA. "We are the face of United Airlines and planes don't take off without us. As Labor Day travel begins, United management is reminded what's at stake if we don't get this done."
"The United management team gives themselves massive compensation increases while flight attendants struggle to pay basic bills," Diaz added. "The 99.99% 'yes' vote is a clear reminder that we are unified in the fight against corporate greed and ready to fight for our fair share of the profits we create."
Kim Montgomery, who has been a flight attendant for 38 years and is president of the Council 6 chapter at AFA-CWA that represents workers based out of Newark Liberty International Airport in New Jersey, told The Bergen Record that United "continues to make money hand over fist."
"Our leaders get pay raises regularly while some of us have not gotten a raise in years," she added. "We have flight attendants who are struggling to make ends meet while our CEOs are on private jets. We want some respect shown in the contract."
AFA said it can now seek to enter the 30-day "cooling-off" period required by the National Mediation Board (NMB) before the federal agency decides whether to allow a strike. Unlike unionized U.S. workers governed by the National Labor Relations Board, airline and rail workers fall under the jurisdiction of the NMB, which rarely grants permission to strike.
United AFA members staged picket marches at 20 U.S. airports on Tuesday after the union vote result was announced. Flight attendants chanted slogans including, "United Airlines, you're no good, pay your workers like you should," and, "Delay, delay, delay is not okay."
United Flight attendants—who have been working under an amendable contract for nearly three years—applied for federal mediation over eight months ago. AFA flight attendants from United and other airlines staged protest rallies at U.S. airports earlier this year to draw attention to their demands and to pressure management to act. Unionized United pilots also picketed for a better contract last year.
"We have not had a new contract since 2019, which means that we haven't had any raises since 2019," said one American Airlines AFA member in a More Perfect Union video published last year. "We kept this airline running during a pandemic, and all we're asking for is fair wages. All we're asking for is quality of life improvements."
Last month, American Airlines flight attendants and company management agreed to a tentative contract that contains $4.2 billion in pay and benefits, including an immediate 18% raise and boarding pay, with some veteran workers in line for much higher increases.
'These partnerships embarrass the LGBTQ+ community at a time when much of the cultural world is rejecting ties to these toxic industries'
Just Stop Oil protesters temporarily blocked London’s Pride Parade Saturday afternoon to protest the event accepting sponsorship money from “high-polluting industries.”
Pride faced accusations of “pinkwashing” over its decision to make United Airlines the headline sponsor of this year’s event.
Seven protesters were arrested at 1:30 pm after blocking the road in front of a Coca-Cola truck. Coca-Cola is seen as the world's biggest plastic polluter.
LGBTQ+ members of Just Stop Oil called on organizers to condemn new oil, gas, and coal licenses and stop allowing the inclusion of floats from these corporations in the parade.
James Skeet, a Just Stop Oil spokesperson, said in a statement:
“Pride was born from protest. It speaks to how far we’ve come as a community, that high-polluting industries and the banks that fund them, now see Pride as a useful vehicle for sanitizing their reputations, waving rainbow flags in one hand whilst accelerating social collapse with the other. It is queer people, and particularly queer people of color in the global south, who are suffering first in this accelerating social breakdown. What would those who instigated the gay liberation movement during the Stonewall riots in 1969, make of the corporatized spectacle Pride has now become?"
“These partnerships embarrass the LGBTQ+ community, at a time when much of the cultural world is rejecting ties to these toxic industries. We call on Pride to remember the spirit in which it was founded and to respect the memory of all those who fought and died to secure the rights we now possess whilst taking the necessary steps to protect our community long into the future.”
London Mayor Sadiq Khan speaking before the parade said:
“I agree with protesting in a way that is lawful, safe, and peaceful. I think that Extinction Rebellion and Just Stop Oil are really important pressure groups trying to put power on those who have power and influence."
“I fully support the right to protest. It’s really important to recognize the joy of democracy is protest."
“I am somebody who feels quite passionately that we have to tackle the climate emergency. And I feel quite passionately about encouraging people to join the movement to tackle the climate emergency. In my view, protest should be peaceful, lawful, and safe.”
Peter Tatchell, the legendary LGBTQ+ rights campaigner, and prominent member of the Gay Liberation Front and the civil resistance group OutRage! Said:
“I helped organize the first Pride in the UK in 1972 and have attended every Pride London march since then. Pride was always meant to be both a celebration and a protest. From the outset, we stood in solidarity with other struggles for freedom and social justice, against corporate pinkwashing and all forms of exploitation. We saw queer liberation as just one aspect of a wider liberation movement.”
“Climate destruction is destroying communities, jobs, homes and lives across the world, especially in poorer countries. Fossil fuels are endangering the survival of humanity – including LGBTQ+ people. Our community must not collude with environment, species and climate destroying companies.”
On the heels of strike-authorization votes by American and Southwest pilots, United pilots protested at airports across the U.S. on Friday to tell management that "enough is enough."
Following what the Air Line Pilots Association called "more than four years of empty promises," 3,000 off-duty United Airlines pilots represented by the union protested at major airports across the U.S. on Friday, demanding the finalization of a contract with higher pay and humane scheduling practices.
"Thousands of United pilots are picketing coast-to-coast today to deliver management a message they cannot ignore: Enough is enough," Capt. Garth Thompson, chair of the United ALPA master executive council, said in a statement.
"United management needs to stop slow-rolling negotiations... and do the right thing for their pilots."
"We have been stuck with an antiquated scheduling system and a contract nowhere near industry-leading standards," said Thompson. "We want United to succeed as industry leaders, and every day that passes without an agreement is another day the best and brightest future aviators go elsewhere."
United pilots—joined by ALPA president Capt. Jason Ambrosi, fellow ALPA pilots, and union supporters—demonstrated in front of terminals at airports in 10 cities as well as outside the company's flight training center in Denver.
Association of Flight Attendants-CWA president Sara Nelson was among those who participated in an act of solidarity.
"I am proud to stand here today to send United Airlines management a message that the airline's pilots have the full backing of their international union in their fight for the contract they have earned," said Ambrosi, who leads the 69,000-member union and joined a picket line in Chicago. "United management needs to stop slow-rolling negotiations that have dragged into their fifth year and do the right thing for their pilots."
Management has failed "to recognize the value pilots bring to the overall success of the airline," ALPA said. "United pilots were there for customers during one of the worst times for travel in recent history, and they also helped United Airlines emerge from the pandemic stronger than before."
Thompson, who called Friday's nationwide informational picket a "resounding success," stressed that "United pilots will always be there for our customers."
"Unfortunately," he added, "the same cannot be said about management, who seems to think that a last-minute cancellation of a United pilot's scheduled day off, or abrupt trip reassignments that extend into planned days off, is acceptable for a United pilot's family."
"This old pilot contract impacts our ability to maintain a healthy work-life balance," Thompson continued. "United pilots will deal with this adversity in our usual professional and safe manner. We will continue to work in 2023 despite staffing shortages in Air Traffic Control facilities, aggressive summer schedules, capacity constraints, and weather." However, he noted, "United pilots want the company and the public to know that the bold 'United Next' growth plans cannot work without an updated pilot contract."
"This old pilot contract impacts our ability to maintain a healthy work-life balance."
The action by United pilots comes in the wake of a pair of successful strike-authorization votes by pilots at other airlines.
On May 1, 95% of American Airlines pilots voted to authorize a strike. (Of the airline's 15,000 pilots, 96% participated, with 99% expressing support for a possible strike).
"We will strike if necessary to secure the industry-leading contract that our pilots have earned and deserve—a contract that will position American Airlines for success," said Capt. Ed Sicher, president of the Allied Pilots Association. "Our pilots' resolve is unmistakable. We will not be deterred from our goal of an industry-leading contract."
"The strike-authorization vote is one of several steps APA has taken to prepare for any eventuality and use all legal avenues available to us for contract improvement and resolution," Sicher noted. "The best outcome is for APA and management to agree on an industry-leading contract—achieved through good-faith bargaining—benefiting our pilots, American Airlines, and the passengers we serve."
On Thursday, 97% of Southwest pilots voted to authorize a strike. (Of the airline's 10,000-plus pilots, 98% participated, with 99% expressing support for a possible strike).
"This is a historic day, not only for our pilots but for Southwest Airlines," said Capt. Casey Murray, president of the Southwest Airlines Pilots Association. "The lack of leadership and the unwillingness to address the failures of our organization have led us to this point. Our pilots are tired of apologizing to our passengers."
Murray and other union leaders have attributed Southwest's meltdown last winter to executives' yearslong refusal to invest in much-needed technological upgrades despite benefiting from billions of dollars in federal aid during the first two years of the Covid-19 pandemic.
"We want our passengers to understand that we do not take this path lightly," Murray said Thursday. "We want our customers to be prepared for the path ahead and make arrangements on other carriers so that their plans through the summer and fall are not disrupted."
United's 14,000 pilots could be next in line to vote on strike authorization.
As The Associated Press reported Saturday, "Pilots at all three carriers are looking to match or beat the deal that Delta Air Lines reached with its pilots earlier this year, which raised pay rates by 34% over four years."
"United has proposed to match the Delta increase, but that might not be enough for a deal," AP observed. Citing Thompson, the outlet noted that "discussion about wages has been held up while the two sides negotiate over scheduling, including the union’s wish to limit United's ability to make pilots work on their days off."
The nation's pilots "are unlikely to strike anytime soon, however," AP reported. "Federal law makes it very difficult for unions to conduct strikes in the airline industry, and the last walkout at a U.S. carrier was more than a decade ago."
"Under U.S. law, airline and railroad workers can't legally strike, and companies can't lock them out, until federal mediators determine that further negotiations are pointless," the outlet explained. It continued:
The National Mediation Board rarely declares a dead end to bargaining, and even if it does, there is a no-strikes "cooling-off" period during which the White House and Congress can block a walkout. That's what President Bill Clinton did minutes after pilots began striking against American in 1997. In December, President Joe Biden signed a bill that Congress passed to impose contract terms on freight railroad workers, ending a strike threat.
Regardless of the legal hurdles to a walkout, unions believe that strike votes give them leverage during bargaining, and they have become more common. A shortage of pilots is also putting those unions in particularly strong bargaining position.
Although Congress is highly unlikely to permit an airline strike, disgruntled pilots could still cause disruption through "work to rule," Arthur Wheaton, director of labor studies at Cornell University, told AP.
"They could say, 'We're not working any overtime,'" said Wheaton. "I don't anticipate the pilots trying to screw up travel for everybody intentionally, but bargaining is about leverage and power... having the ability to do that can be a negotiating tactic."
Facing criticism over recent air travel issues, the U.S. Transportation Department is reportedly investigating whether three airlines have scheduled flights they know they can't staff.
Three unidentified U.S. airlines are under federal investigation for potentially scheduling flights the companies know they ultimately will not be able to fly—a revelation The New York Times reported Friday, just two days after United Airlines' CEO suggested competitors are doing just that.
The Times focused largely on how air travel issues—including mass cancellations from a winter storm during the holidays last month and a Federal Aviation Administration (FAA) system outage that grounded air traffic across the country last week—have put Pete Buttigieg, the head of the U.S. Department of Transporation (DOT), "in the hot seat."
"Unfortunately, the Department of Transportation has been hesitant to hold the airlines accountable," John Breyault, the vice president for public policy at the National Consumers League (NCL), told the newspaper. "While Secretary Buttigieg has talked a tough talk, particularly over the past few months, we have yet to see that really translate into action."
"Imagine any other industry taking money for products it can't deliver."
In an interview, Buttigieg defended his record—which has included a proposed rule on refunds, an online dashboard of airlines' commitments, and nearly $16 million in fines—saying that "in terms of what we've done and in terms of what we're doing, I would stack up our work in this area against anybody who’s taken this on at the federal level."
According to the report, "The department is also investigating three U.S. airlines over whether they scheduled flights that they did not have enough staff to support, a spokeswoman for the agency said, though she declined to identify the airlines."
That reporting came after United CEO Scott Kirby said Wednesday during an earnings call with investors that "there are a number of airlines who cannot fly their schedules. The customers are paying the price. They're canceling a lot of flights. But they simply can't fly the schedules today."
"What happened over the holidays wasn't a one-time event caused by the weather, and it wasn't just at one airline. One airline got the bulk of the media coverage, but the weather was the straw that broke the camel's back for several," Kirby said—presumably referring to Southwest Airlines, which faced intense scrutiny for canceling nearly 17,000 flights partly due to issues with its personnel management system that employees and other critics claim could have been avoided with technological upgrades.
United has recognized "the new reality and the new math for all airlines," Kirby asserted, while warning that "our industry has been changed profoundly by the pandemic and you can't run your airline like it's 2019 or you will fail."
"We believe any airline that tries to run at the same staffing levels that it had pre-pandemic is bound to fail and likely to tip over to meltdown anytime there are weather or air traffic control stresses in the system," the CEO said, highlighting the need for investments in not only staff but also technology and infrastructure.
Kirby's comments about competitors' alleged scheduling practices caught the attention of the anti-monopoly think tank American Economic Liberties Project (AELP), which described them as "the airlines' open admission of fraud."
"What an extraordinary admission," William McGee, senior fellow for aviation and travel at AELP and author of the airline industry exposé Attention All Passengers, tweeted Thursday.
For months, the AELP has asked the DOT "to investigate IF airlines were accepting bookings (and $!) for flights they couldn't operate," he said. "Now United's CEO confirmed it. Imagine any other industry taking money for products it can't deliver."
"Ironically, we're learning more about canceled flights from the airlines than we are from the Department of Transportation," McGee told The Lever, while also pointing out that the DOT's "complaint database showed that United was by far the worst offender on unpaid refunds dating back to the earliest days of Covid in 2020."
As The Lever reported Friday:
Complaints against the major U.S. airlines, including United, more than tripled in the first year of the Covid-19 pandemic, as companies routinely sold tickets for flights they could not adequately staff, canceled the flights at the last minute, and slow-walked or withheld refunds while collecting billions in taxpayer bailout dollars.
The behavior prompted 34 attorneys general to write to Buttigieg on December 16 asking his agency to "require airlines to advertise and sell only flights that they have adequate personnel to fly and support, and perform regular audits of airlines to ensure compliance and impose fines on airlines that do not comply."
The letter, submitted as part of the rulemaking process for a still-delayed consumer protection proposal at Buttigieg's agency, also noted that the proposed rule "includes no provision that would correct this practice and that would prevent airlines from advertising and selling tickets for flights that they cannot reasonably provide."
In an opinion piece published by the Times last week in the wake of the FAA outage, the AELP's McGee traced U.S. air travel troubles back much further than the ongoing pandemic, explaining that although "the airlines were initially regulated in the 1930s for many reasons, some of which should be familiar to us in 2023," Congress passed the Airline Deregulation Act (ADA) in 1978.
"One could envision a wholesale return to the pre-1978 era, with route-setting and price-setting brought back into public hands entirely," he wrote, noting that the AELP "has proposed more FAA funding and eliminating federal preemption, which would allow consumers and state officials to sue airlines over consumer and safety rules."
"My colleagues and I are, however, eager to take part in a national conversation about regulating the industry more comprehensively," McGee added. "We haven't had a national discussion for 44 years about the state of air travel. It's time to have that discussion, rather than playing whack-a-mole with each crisis as it arises."
Buttigieg "has taken a tougher line than most of his predecessors" at the DOT, the NCL's Breyault tweeted Friday, while sharing his critical remarks to the Times. "But he is hamstrung by the ADA, which gives airlines far too much power. To truly protect passengers, Congress needs to act."