Southwest Airlines’ flight attendants approved a new $6.3b labor contract, setting a standard that could influence talks at other US carriers. The four-year agreement will provide an initial 22.3% pay raise, followed by three annual increases of 3%, the Transport Workers Union local 556 said in a statement Wednesday. The pact was approved by 81% of those voting, according to the union, which represents 21,000 Southwest workers. The contract, replacing one agreed to in 2019, is the first for flight attendants at a large US carrier in the latest round of talks. The terms will likely draw notice from workers in similar negotiations at American Airlines Group Inc. and United Airlines Holdings Inc. “For far too long, flight attendants across the aviation industry have had to fight to improve our compensation and quality of life,” Lyn Montgomery, TWU 556 president, said in the statement. Labor and fuel are the top expenses for airlines, and flight attendants are the 11th Southwest work group to approve a new contract since October 2022. The agreements provide certainty going forward for the carrier’s budgeting process. Southwest pilots in January approved a new agreement that will boost pay 50% on a compounded basis over five years. Flight attendants will split a pool of at least $364m for ratification bonuses based on time worked during the years the accord was being negotiated. The contract includes improved health-care benefits, better pay for situations including irregular operations or an extended duty day, holiday pay on July Fourth, Memorial Day and Labor Day and what the union said is an industry first for paid maternal and paternal leave.<br/>
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LATAM Airlines said on Wednesday that it was no longer seeking to acquire Boeing B737 planes either from bankrupt Brazilian carrier Gol or other sources, opting to look for alternative narrowbody aircraft after talks failed. The two airlines clashed shortly after Gol filed for bankruptcy protection in the U.S. in January, with Gol accusing LATAM of trying to poach its planes and pilots. LATAM then offered to acquire any B737s that Gol no longer wished to operate after its bankruptcy restructuring. Gol is trying to renegotiate terms on 90 aircraft leases by the end of May, and LATAM did not say how many planes it hoped to acquire during Gol's bankruptcy. LATAM blamed Gol's "lack of meaningful engagement" for the deal's failure, in a letter filed on Wednesday in Gol's bankruptcy case. Gol declined to comment on LATAM's letter. LATAM said that the "scarcity of available B737 aircraft, as well as the debtors' refusal to cooperate" had forced LATAM to pursue alternative narrowbody aircraft to bolster its fleet and meet rising consumer demand. "LATAM has been unable over the last several months - despite its extensive efforts - to obtain B737 aircraft from other sources unrelated to the debtors," LATAM's attorneys wrote. "Accordingly, LATAM is unlikely to continue pursuing any transactions involving the B737." Airlines have needed to adjust their business plans as safety concerns have forced Boeing to slow production of its best-selling 737 Max.<br/>
Ryanair Holdings CEO Michael O’Leary said Boeing management needs to focus on continuity as it seeks to stabilise the business, and that the new head of the commercial aircraft unit has made a promising start. Speaking in London, O’Leary said he’s held talks with Stephanie Pope, Boeing’s new head of commercial aircraft, twice in the last two weeks and that he’s optimistic Boeing will be able to ramp up output and deliver close to 40 jets to Ryanair ahead of the peak summer travel season. O’Leary urged Boeing to keep Pope in Seattle for the next two to three years in order for her to keep a close eye on production. “I think all of the signs at the moment are getting more optimistic,” O’Leary said in an interview. “Now, it’s only a week or two, but that’s the first time deliveries have actually kind of moved forward instead of continuously getting delayed backwards.” Boeing has come under increasing scrutiny from lawmakers, airlines and regulators following a near-catastrophic blowout of a fuselage panel on a 737 Max 9 during flight in early January. The Federal Aviation Administration has restricted the planemaker from raising output on the 737 Max beyond the 38-jet monthly pace until they’re satisfied the quality measures have taken root.<br/>
Ryanair Holdings Plc Chief Executive Officer Michael O’Leary weighed into the UK’s controversial plan to deport refugees to Rwanda, saying he would “happily” do the flights if he had the available aircraft. “If it was the winter schedule and we had spare aircraft sitting around and if the government were looking for additional deportation flights or any other flights, we would happily quote for the business,” O’Leary said in an interview in London. The UK government hasn’t approached Ryanair to carry out the flights, O’Leary said. Prime Minister Rishi Sunak has vowed to push ahead with a plan to send people seeking asylum in the UK to Rwanda despite opposition from courts and across both sides of the political spectrum. O’Leary, known for his controversial takes on issues from obesity to climate change, shrugged off warnings from the United Nation, which has said that airlines facilitating the removals could be complicit in violating international law. The Rwanda policy was first announced two years ago. Sunak has stuck with it despite opposition as his party slumps in the polls and as the number of asylum seekers reaching the UK by boat his a record. <br/>