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Alaska Air flight attendants stage picket in Seattle over labor deal (NYSE:ALK)

December 19, 2023
in Business
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DaveAlan

Flight attendants with Alaska Airlines (NYSE:ALK) are staging an informational picket at Seattle-Tacoma International Airport on Tuesday as the Association of Flight Attendants-CWA union continues to negotiate on a new contract with the airline company.

The union said the initial proposals from parent company Alaska Air Group (ALK) were not “economically feasible.” The union also noted that it is gathering information on the proposed merger between Alaska Air (ALK) and Hawaiian Holdings (HA), and reviewing details around the proposed merger. AFA leaders from both Hawaiian (HA) and Alaska Air (ALK) are expected to meet with the union’s international officers and experts to conduct a review. The airlines have stated that if the merger closes, all bases will remain open and contractual protections will protect base assignments.

Reports indicate that the merger has angered ALK’s flight attendants due to their view that the company can afford the deal the new labor deal that is being sought. Alaska Air (ALK) announced on December 3 that it agreed to acquire Hawaiian Airlines (HA) for $18 per share in a deal that values the carrier at ~$1.9B including debt. The companies said the combination of complementary domestic, international and cargo networks would enhance competition and expand choice for consumers on the U.S. west coast and the Hawaiian Islands. Alaska Air (ALK) said $235M of expected run-rate synergies reflect a conservative estimate of the deal’s synergy potential.

Shares of Alaska Air Group (ALK) gained 2.22% in Tuesday morning trading to $40.15 vs. the 52-week trading range of $30.75 to $57.18. Hawaiian Holdings (HA) slipped 0.15% to $13.73 vs. the 52-week trading range of $3.70 to $14.25.



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