WN is paying them ALL their retro pay, it’s quite a large sum.
It’s around $160 million.
They lost no work and made numerous gains.
Again, all of this is because AMFA happened to walk into a "perfect storm" situation where they were able to get WN cornered. Their ongoing slowdown, which was already causing WN to get hammered in the press and especially in social media, was taking a huge toll. People were booking away due to the operational issues, res agents were working mandatory OT to reaccommodate customers since WN doesn't reprotect offline, and their brand was being damaged as a result.
Then, 5% of their already-stretched-thin fleet was grounded, without any real guidance on when they'd be able to get them back in the air. And due to the capacity of those planes vs. the rest of the fleet, that was a huge hit to their ASMs.
WN realized they'd be paying, one way or the other - so, do you pay in the form of continued book-aways, reduced net promoter and JD Power scores, and ongoing social media savaging each day, or once through the nose to resolve an outstanding labor dispute?
They took the latter, and AMFA has the MAX8 situation to thank for it. They'd never have gotten anywhere near the package they did without it.
The union badly miscalculated the situation when they appeared to think the MAX8 situation at AA, coupled with an illegal work action, would be their payday. Instead, they'll get a day in court.
Last edited by EA CO AS
on Tue May 21, 2019 11:41 pm, edited 2 times in total.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
Comments made here are my own and are not intended to represent the official position of Alaska Air Group