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Delta United sued for selling 'windowless seats'
Delta Air Lines, United Airlines and other airlines were sued by passengers on Tuesday who claimed that they had paid more money for "window" seating only to be placed in seats facing a blank wall. United filed a proposed class action in San Francisco Federal Court and Delta filed a proposal in Brooklyn New York Federal Court, seeking millions in damages for over 1 million passengers. According to the complaints, some Boeing 737s, Boeing 757s and Airbus A321s have seats without windows because of placements of electrical conduits, air conditioning ducts or other components. Delta and United passengers claim that they do not flag these seats when booking, unlike competitors such as Alaska Airlines or American Airlines. This is true even though they charge tens of dollars, and sometimes hundreds, for them. According to the lawsuits, people purchase window seats in order to alleviate their fear of flying, motion sickness, or keep a young child busy, or for extra light. They also buy them so they can watch the world pass by. United's complaint stated that "had plaintiffs and class members known the seats they purchased (were not) windowless, then they would never have chosen them, much less paid extra." Delta's complaint also contained similar language. Delta has its headquarters in Atlanta and United in Chicago. Both did not immediately respond to requests for comments. The carriers can generate additional revenue by offering services such as seat upgrades, luggage fees, airport lounges, and cabin upgrades. This allows them to keep base fares low while generating more money. Aviva Copaken from Los Angeles and Marc Brenman from San Francisco are leading the United lawsuit. Copaken claimed that United reimbursed her for windowless seats she had on two flights but not the third. SeatGuru, a website that allows passengers to search for the pluses and negatives of seats including those without windows, is a great tool. Carter Greenbaum, an attorney whose firm filed both lawsuits, stated that the fact that Delta and United could have gotten information from websites of third parties does not excuse their conduct. He said that a company cannot misrepresent its products and then use third-party reviews to claim that a customer would have known it was lying. Meyer v Delta Air Lines Inc., U.S. District Court for the Eastern District of New York No. The cases are Meyer v Delta Air Lines Inc, U.S. District Court for the Eastern District of New York, No. 25-06995. Reporting by Jonathan Stempel, New York Editing Marguerita Choy
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Turkish Airlines has confirmed that Air Europa in Spain has accepted its offer to purchase a minority stake
Turkish Airlines announced on Tuesday that it has accepted its offer to acquire a minority stake of Spanish airline Air Europa. In June, the Turkish flag carrier announced that it had begun non-binding discussions about a possible Air Europa investment. It then revealed earlier this month that they were in the process preparing a legally binding offer. Turkish Airlines issued a late-night statement on Tuesday to the Public Disclosure Platform stating that Air Europa had accepted the offer. The process now moves to the preparation and commencement of the official closing procedures. It said that the transaction involved an investment in the amount of 300 million euro ($349.38m), adding that the majority of this investment would take the form of capital increases. Turkish Airlines also stated that the exact percentage of the minorities stakes it will acquire after technical and financial adjustments would be determined at the final stage. Turkish Airlines stated that the process should be completed in 6-12 months, subject to the obtaining of the required permits and approvals by the relevant regulatory bodies. Turkish Airlines' executive said that the Spanish carrier is a good fit for Turkish Airlines because of its strong presence in Latin America, the Iberian Peninsula and Latin America.
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Air Canada's labor agreement could reshape the pay of North American airline crews
The latest blow to airline compensation systems that do not pay cabin crews fully for their work hours is a crippling strike of Air Canada flight attendants who grounded thousands flights over unpaid wages and unpaid overtime. The union representing more than 10,000 Air Canada Flight Attendants announced on Tuesday that they had reached a tentative agreement to end unpaid labor, but did not provide any further details. Analysts believe that any gains made could have a positive impact on upcoming contract talks in North America. The deal may also increase structural costs in an industry that is cyclical. The second largest operating cost for airlines is labor. The four-day walkout that stranded over 500,000 passengers reflects unrest among U.S. carriers where flight attendants are not allowed to leave their jobs until the National Mediation Board gives permission. Last year, cabin crews from American, Southwest and Alaska Airlines rejected contract agreements because they didn't address their concerns over unpaid work. United Airlines flight attendants voted against a tentative labor agreement worth $6 billion last month, because it did not include compensation for the time spent on the ground prior to and after flights. Before returning to negotiations in December, the union of Chicago's airline is conducting a survey among its members. United and the union didn't immediately respond to comments. Cabin crews are paid a minimum amount of time, but they are compensated mainly when the plane is in motion. They are not paid for important tasks that are performed during boarding, disembarking, or other ground operations. The unions claim that this is a significant amount of unpaid work. In the past, airline workers were able to secure concessions in contract negotiations because the industry was suffering due to economic downturns and pandemics. Flight attendants are resentful due to a rise in inflation, stagnant salaries, and an increased workload. This has fueled their demands for pay reform. The Air Canada strike is a positive for all negotiations. "It defined the problem of unreasonable expectations for flight attendants working without pay," Sara Nelson, International president of the Association of Flight Attendants - CWA, who represents 55,000 flight crew members at 20 airlines, United included. The striking flight attendants inspire all workers. Nelson spoke to Wesley Lesosky on Monday, the head of Air Canada’s flight attendants' union, in order to coordinate positions. Representatives of both unions confirmed that this was done. Shanyn Elliott is an Air Canada Rouge flight hostess who said that when she began her job in 2017, she would take long-haul flights for extra money as the C$23 (16.60) per hour wage she earned did not cover living expenses. Elliott, the head of the strike committee of Air Canada flight attendants in the Canadian Union of Public Employees, added that frequent delays following the pandemic resulted in longer working hours. Michael Rousseau, CEO of Air Canada, said that the industry must review its compensation model. In an interview he stated that the Canadian carrier had accepted the concept for ground pay and added other airlines would likely examine their own models. Rousseau said, "I think that the industry needs to look more closely at this in time." "We should all be open to changes." American and Alaska compensate their attendants for the time spent boarding in their new agreements. American's flight crews are now compensated for the time between flights. These gains were made after Delta Air Lines - whose flight attendants do not belong to a union - instituted boarding compensation for cabin staff at half their hourly wage in 2022, when they tried to organize. COSTS ARE RISING The cost of operating airlines would be increased if passengers were charged for time spent on the plane and for boarding. American Airlines' new contract with flight attendants is estimated to cost an additional $4.2 billion in five years. Last month, the company blamed its underperformance in margins on increased labor costs. Matthew Lee, an analyst at Canaccord Genuity, estimates that the proposed wage increases at Air Canada could result in additional costs of up to C$140 millions. Air Canada's wages have increased by about 26% in the past year. A weak passenger flow to the U.S. is a problem for the airline, as are the strained relations between Canada and the U.S. This has led to a 40% drop in profit quarter-on-quarter. Analysts warn that if you hold the line with costs, it could lead to industrial peace. John Gradek is a McGill University lecturer on supply networks and aviation. He said, "The movement has begun."
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Petrobras subsidiary to launch tender for barges again in Brazil
Transpetro in Brazil, the logistics division of Petrobras, will relaunch an auction for barges following a low level of interest during a bidding process held in May, Transpetro's Chief Executive Sergio Bacci announced on Tuesday. Transpetro said that only one shipbuilder submitted bids for the four barges, four pushboats and one tugboat, which were intended to be used for fuel transportation. Bacci, speaking at an event in Rio de Janeiro, explained that the plan is to relaunch this tender with a total of twenty barges. This could make the tender more attractive for builders. Bacci said, "We are finalizing the process." "We expect to release the bids for the barges by September." The firm announced in May that it would commission 20 barges and 20 tugboats by the end 2026. Bacci didn't specify whether the tender included the remaining tug boats and push boats that the firm wants to purchase. Bacci stated at the time that the new barges will allow Transpetro become a leader in the transportation of oil derivatives and biofuels throughout Brazil.
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Musk's SpaceX and others win US Court challenge to the labor board's structural
The U.S. National Labor Relations Board structure was likely illegal, according to a U.S. appellate court that ruled on Tuesday. It also blocked the agency's ability to pursue cases against SpaceX and other companies. The 5th U.S. Circuit Court of Appeals in New Orleans has issued a ruling. The 5th Circuit Court of Appeals, based in New Orleans, is the first appeals court to rule that a law protecting NLRB administrative judge and the five board members from being fired at will by the President is likely illegal. The 5th Circuit said on Tuesday that the protections against removal prevent the President from exercising his powers to control the Executive Branch. Circuit Judge Don Willett wrote that, because the Executive Power remains with the President alone, those who exercise this power on his behalf are still subject to his supervision. Willett is a Republican appointee. There are several similar lawsuits challenging the structure of the board. The Trump administration uses the same arguments, after the president dismissed a Democratic board member in January. She sued to get back her job. The 5th Circuit has upheld the decisions of three Texas judges who blocked NLRB actions alleging illegal labor by SpaceX and Energy Transfer, a pipeline operator, as well as Aunt Bertha which operates a search engine for social services, pending their outcome. Willett wrote: "The Employers' case has been made and they should not be forced to choose between constitutionality and compliance." Requests for comments were not immediately responded to by the board or companies. Musk was Trump's top adviser, leading an effort to dramatically shrink the federal workforce, and cut government spending. The two men fell out publicly in May. SpaceX is suing the NLRB to stop a board case. The NLRB, the only federal agency to hear private-sector disputes in labor relations, is the NLRB. General counsel of the agency can file complaints against unions or employers. These are then heard by administrative judges whose decisions may be appealed. Since Trump fired Gwynne Wicox in January, the five-member board is paralyzed. It cannot make decisions. The NLRB, which was created by Congress in the United States to be independent of the White House and had never been removed before Wilcox by Trump, is now paralyzed. The panel on Tuesday included a second Trump nominee and a Judge appointed by Republican George H.W. Bush. (Reporting and editing by Alexia Garamfalvi, Sandra Maler, and Daniel Wiessner, Albany, New York)
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Air Canada resumes service after the flight attendants union ends its strike
Air Canada's unionized cabin crew reached an agreement on Tuesday with Canada's largest airline, ending the first flight attendant strike in 40 years. The strike had disrupted travel plans for thousands of passengers. The airline, which serves 130,000 passengers daily, retracted its earnings guidance for the third quarter and full year due to the strike lasting nearly four days. The carrier announced that it would begin to gradually restore operations on Tuesday. A full restoration could take a week or longer. The union has said that it has concluded mediation with Air Canada Rouge and the low-cost airline. The Strike is over. The Canadian Union of Public Employees announced in a post on Facebook that they had a tentative deal. Air Canada announced that some flights would be cancelled over the next 7-10 days, until the schedule stabilizes. Customers with canceled flight can choose from a travel credit or refund. Mark Nasr is Air Canada's executive Vice President and Chief Operations Officer. He told CBC that 5,000 Air Canada employees and 120 other airlines are working on rebooking customers. After contract negotiations with the airline failed, the flight attendants quit their jobs on Saturday. They wanted to be paid for tasks like boarding passengers. The union has announced that unpaid work is no longer an option, although details of the negotiation have not yet been released. Air Canada's flight crews have been arguing for months that new contracts should include payment for work done at the ground level, such as boarding of passengers. Ground pay has been settled. Nasr, speaking to CBC, said that our flight attendants would be compensated for the time they spend on the ground. CUPE, the union that represents Air Canada's 10,400 Flight Attendants, sought to achieve gains in unpaid work beyond those made by American Airlines and other U.S. carriers. The union continued to strike despite the Canada Industrial Relations Board declaring its actions illegal. The refusal of the company to comply with a federal labor board's order that the flight attendants return to work has created a standoff between workers, the government, and the company. Patty Hajdu, the Jobs Minister, had encouraged both sides to consider government-mediated mediation. She also put pressure on Air Canada Monday by promising to investigate claims of unpaid airline work. Hajdu's spokesperson said that the investigation would take between six and eight weeks before it was made public. FRUSTRATION OF PASSENGERS In the last two years, unions from the aerospace, construction and airline sectors, as well as rail, have been pushing employers to improve conditions and pay in a tight labor marketplace. Many customers expressed their support for flight attendants. However, the frustration over flight cancellations has grown. Retired Klaus Hickman is sympathetic to workers who are demanding better wages, but he's worried about his health and travel problems. They want more money in order to survive. "And so is it with everyone else," he added. Star Alliance is the largest airline alliance in the world. James Numfor (38), a Regina resident who had returned from Cameroon to attend his brother's funeral, was stranded for two nights in Toronto. Air Canada provided only one night's accommodation for Numfor and his family, before abandoning them. He had slept with his family in the airport. (Reporting and writing by Caroline Stauffer, Arpan Varghese, Aishwarya Jain; Additional reporting by Divyarajagopal, Editing by Sam Holmes; Arun Koyyur; Rod Nickel
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US threatens withholding transit funds due to New York subway safety concerns
If the U.S. Transportation Department does not improve, it could withhold up 25% of federal funding for New York Metropolitan Transportation Authority's track maintenance workers. According to the agency, the Federal Transit Administration of the Department issued a directive to New York City Transit in August 2024 after the MTA failed to improve safety measures following the death in November 2023 of a track-maintenance employee and the second serious injury in June 2024. The MTA is required to submit a comprehensive risk assessment for its Rail Transit Roadway Worker Protection in 30 days. This was announced by the Department on Tuesday. The MTA declined to comment immediately. In a recent statement, FTA Administrator Marc Molinaro stated: "I want to be clear. We will no longer accept being jerked about on safety and security matters." A FTA audit conducted last year revealed significant safety shortcomings and instructed the agency to conduct additional oversight activities in order to address a pattern of safety incidents and concerns that have been affecting New York City Transit workers. In 2023, the agency had 38 near-misses with potential employees. This is a 58% rise over 2022. The Trump administration also threatened to cut off funding to the MTA over subway crimes and sparred against the MTA in its attempt to kill Manhattan’s congestion pricing program. Sean Duffy, Transportation Secretary, threatened earlier this year to deny federal funding and approvals of other projects if the agency didn't end congestion pricing. Congestion pricing was implemented in Manhattan in January. It charges a toll on vehicles traveling south of 60th Street. The program aims to reduce traffic in Manhattan, speed up the flow of vehicles, and raise money to fund mass transportation capital improvements. (Reporting and editing by Franklin Paul, Alistair Bell, and David Shepardson)
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Toms Capital wants CSX to meet after acquiring stakes, sources claim
People familiar with the situation said that Toms Capital Investment Management, a hedge fund, has asked to meet the board of U.S. railroad operator CSX, after buying a stake recently. This raises speculation about the firm pushing for a merger. Toms Capital (run by Ben Pass) invested in the railroad in the second quarter. As of June 30th, the company held 5.6 million common shares in CSX. Pass is not clear on what it wants, but he has been known to push for mergers in companies such as U.S. Steel or Kenvue, the maker of Band-Aids and Tylenol. The hedge fund has invested in the company and is reaching out at a moment when speculation is growing that new railroad mergers will be likely following Union Pacific and Norfolk Southern's deal last month. Toms Capital, unlike some activist investors prefers to remain in the shadows and work for change without the spotlight, as opposed to launching loud and public campaigns. Toms Capital's representative declined to comment. CSX didn't immediately respond to a comment request. CSX has worked with activist investors before and its founder Paul Hilal now sits on the CSX Board. Toms was not the only company to invest in the railroad industry during the second quarter. Ancora Holdings has also made a toehold purchase and is considering further purchases, according to a person who knows the firm's trade patterns. Ancora's spokesman declined to comment. Ancora is known for pushing for change and was elected to the board of directors at Norfolk Southern, a rival railroad. The speculation about CSX’s future is more intense now that Union Pacific, a rival railroad, acquired Norfolk Southern for $71.5 billion in a deal in July. The U.S. Surface Transportation Board must still approve the deal. Investors say CSX must find a partner now. This could include Berkshire Hathaway's BNSF Railway, among others. Reporting by Svea Autumn-Bayliss. Dawn Kopecki, Marguerita Chy and Dawn Kopecki edited the story.
Ancora urges CSX CEO to replace or pursue merger amid rail industry turmoil
Ancora Holdings urged CSX to either pursue merger options in the near future or to replace CEO Joe Hinrichs.
The activist investor urged that the railroad evaluate possible tie-ups between Berkshire Hathaway's BNSF Railway, and Canadian Pacific Kansas City to determine which merger partner would be best.
CSX warned that once Norfolk Southern, Union Pacific and other transcontinental networks start operating together as a unified network, CSX will be the biggest loser.
The activist investor stated that "if a deal is not struck, it's unlikely we will need to run a proxy competition in order to replace Mr. Hinrichs with a qualified operator."
Ancora criticized CSX earlier this year for not engaging with Union Pacific. This seems like the kind of mistake that a railroad might make when its CEO is inexperienced and unconfident.
The report also said that it was important to get something done during the Trump Administration, which is pro-business.
Ancora stated that shareholders cannot afford to make any more mistakes as CSX catches up in the rail merger race.
CSX said it welcomed opportunities to increase shareholder value and appreciated input from its shareholders.
Ancora sent a letter to the board members of CSX in August. Union Pacific had announced its intention to buy smaller rival Norfolk Southern for $85 billion. This would be the first coast-to-coast U.S. freight railroad, and reshape how goods and grains are moved across the country. Reporting by Abhinav Paramar in Bengaluru, Editing by Alan Barona
(source: Reuters)