VESTIGES REMAIN

Earlier, I wrote that whatever network relationship American (AA) and jetBlue (B6) were to conjure up after announcing their strategic partnership - questions would arise.

The timing for winning USG approval for the venture was brilliant as an administration packed its boxes. I concluded: this [commercial relationship] is bigger than a press release.

I haven't discussed a labor issue for some time. But, no one should have been naïve to the fact that labor's ghosts of deals past would haunt.

Concerns over future flying by at least one party were predictable. This week the ALPA-represented B6 pilots voted against the agreement citing job concerns. The AA pilots chimed in too.

It is hard to say which airline is in a position of strength. The repositioning of B6 to EWR and MIA was certain to be attractive to a Wall Street migrating to South Florida. Silicon Valley too.

Great hubs at CLT and DFW ensure AA is present everywhere. But legacy-rooted AA is not as agile and nimble as B6. And its cost structure is not the envy of the industry.

A generational opportunity is present for management and labor to extinguish vestiges impeding commercial opportunities over the coming few years. A first movers advantage is available. AA + B6 will not be the last.