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Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
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Fri, Sep 12, 2008

Another One Bites The Dust: XL Airways Folds

Union Calls For Early Warnings For Employees

Another week... another busted airline. British vacation carrier XL Airways entered receivership Thursday, stranding thousands of passengers from Florida to Greece... sometimes, in dramatic fashion.

"We were going through departures. We got onto the plane, and they took us off the plane, and ... two police cars turned up and stopped the plane from driving off," passenger Damon Emery recounted to Orlando's WESH-2.

"None of us knew what was going on. They didn't tell us anything. Now they're trying to say they only got news of this when families from England started ringing up the airport," added passenger Emily Joyca.

XL passengers weren't the only ones caught by surprise. Unite, Britain's largest labor union, says the airline's employees were kept in the dark as well, as the situation grew more dire. And the union says that's unfair.

"Airlines that are struggling in the present climate are treating their workforce and the trade unions representing them with contempt," said Unite National Officer Brian Boyd. "As recently as this week, representatives from Unite were discussing a wage claim with XL. It is appalling that employees have been left to hear of their fate through the media. Given the difficulties that aviation workers are facing today to hide the plight of the business from its employees is a disgrace."

Curiously, the union then offered measured support for other airlines that are also struggling. "Unite understand the difficult operating conditions many airlines find themselves in, particularly with fuel running at US$100 a barrel, and the ever increasing competition for passengers."

Unite represents hundreds of workers at XL, and says it will now start the now-common process of pursuing the bankrupt company for redundancy payments for its members. Unite says it will also be seeking urgent discussions with company officials on the future for XL employees.

For the moment, however... we imagine those officials will be more concerned with their own immediate futures...

FMI: www.xl.com, www.amicustheunion.org

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