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California Flight Attendants Reach $24 Million Settlement With American Airlines Over Missed Wages and Meals

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California Flight Attendants Reach $24 Million Settlement With American Airlines Over Missed Wages and Meals

California Flight Attendants Reach $24 Million Settlement With American Airlines Over Missed Wages and Meals. American Airlines has recently reached a significant $24 million settlement in a class action lawsuit filed by California-based flight attendants. The lawsuit alleged multiple violations of local labor regulations, focusing on issues such as meal break provisions and overtime payments. This legal battle has spanned several years in the Los Angeles Superior Court.

Scope of the Settlement

Pending court approval, the settlement will encompass all flight attendants based in California between 2015 and September 2023. Potentially benefiting thousands of crew members, this resolution aims to address the grievances raised by the flight attendants during the specified period.

Allegations of Labor Law Violations

The flight attendants argued that American Airlines failed to adhere to California’s Labor Code, which mandates a 30-minute uninterrupted meal break for employees working more than five hours and additional breaks for those exceeding 10 hours. Transportation workers, including flight attendants, are generally entitled to an extra 10-minute break for every four hours worked.

The lawsuit specifically highlighted the challenges faced by flight attendants in taking these breaks during flights and emphasized the airline’s failure to compensate adequately, such as the omission of meal break premium wages and other overdue payments.

Similar Cases in the Industry

This lawsuit echoes a parallel case involving Virgin America flight attendants in California, acquired by Alaska Airlines. While Alaska Airlines vigorously contested the lawsuit, even reaching the Supreme Court, a surprising denial of appeal meant that a San Francisco appeals court ruling in favor of the Virgin America flight attendants stood unchallenged.

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Settlement Approval and Potential Payouts

The court is expected to decide on the approval of the settlement early next year. If accepted, flight attendants could anticipate receiving their payouts by May or June 2024, marking the resolution of a protracted legal dispute.

Conclusion

American Airlines’multimillion-dollar settlement underscores the importance of addressing labor law violations and ensuring fair compensation for employees. This development also resonates with similar industry cases, emphasizing the need for airlines to comply with state labor regulations. As the court’s decision on the settlement awaits, the outcome will have implications not only for the affected flight attendants but potentially for labor practices within the aviation sector as a whole.

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Airlines

Japan Airlines counts the cost of Tokyo crash

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Japan Airlines counts the cost of Tokyo crash

Japan Airlines counts the cost of Tokyo crash, Flights at Tokyo Haneda airport continue to experience disruptions following a fatal collision between a Japan Airlines aircraft and a smaller plane on the runway. The incident, resulting in five fatalities, prompts investigations by transport authorities to prevent such tragedies in the future.

Market Fluctuations Post-Accident

Upon the reopening of markets after Japan’s New Year’s holidays, Japan’s second-largest airline, Japan Airlines, witnessed a surge in sell orders. Despite the initial setback, the share price managed to recover by the end of the trading day.

Financial Impact and Insurance Coverage

Japan Airlines updated investors, highlighting the coverage of the loss of the Airbus A350 aircraft through insurance. However, additional costs are anticipated, including offering ticket refunds to customers with reservations through March 31, 2023, who wish to cancel their flights. The estimated operating loss for the airline stands at approximately ¥15 billion ($105 million), a significant challenge considering the airline’s recent recovery from pandemic-related losses.

Short-Term Setbacks, Long-Term Resilience

The tragic incident is expected to impact the airline’s earnings for the year to March. Despite this setback, JAL’s longer-term prospects appear resilient. While airline demand in Asia has lagged behind the US and Europe post-pandemic, JAL’s full-service flights have already seen passenger revenue return to pre-pandemic levels. Operating margins have improved, thanks to price hikes and a substantial increase in the average revenue earned per passenger kilometer flown.

Growth Expectations and Market Outlook

Shares of Japan Airlines currently trade at 12 times forward earnings, a premium compared to US peer United Airlines. This reflects positive growth expectations and suggests that the market anticipates the airline’s resilience in the face of short-term challenges.

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Conclusion

Despite the immediate challenges posed by the Tokyo crash, Japan Airlines remains steadfast in addressing the incident’s aftermath. The airline’s financial resilience and positive market outlook indicate a potential recovery and continued growth, emphasizing its commitment to passenger safety and long-term success.

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