Spirit Airlines Strike Enters 3rd Day

Spirit Airlines pilots are entering their third day of strikes today. All Spirit Airlines flights are canceled until Wednesday, June 16. Reuters has more:

Spirit’s 440 pilots represented by the Air Line Pilots Association walked off the job on Saturday after U.S.-mediated talks failed to bridge differences with management over pay, scheduling and benefits. The strike at Spirit was the first notable job action at a U.S. passenger airline since Northwest Airlines mechanics walked off the job in 2005. Northwest was acquired by Delta Air Lines Inc in 2008.

Spirit said the ALPA rejected an offer that amounted to compound average 29 percent pay rise and which would have cost the airline an additional $70 million over five years. The offer included a signing bonus and an increase in pilots’ 401K match by the company, according to a statement from Spirit.

Other airlines are capitalizing off Spirit’s customers, according to MarketWatch:

JetBlue overlaps with Spirit in eight markets from Fort Lauderdale, Fla., according to the research firm. “Revenues captured from Spirit flying could provide modest upside,” analyst Daniel McKenzie said. JetBlue received an upgrade, but American parent AMR Corp. is likely to see the biggest benefit from the Spirit strike: the legacy carrier shares 32 markets with the tiny carrier, (one analyst) said.

Spirit is offering a full flight credit plus an additional $100 credit for anyone whose flights have been canceled.