The privately held Spirit Airlines Inc. canceled all flights Saturday when its pilots went on strike as mediated contract talks failed to reach an agreement.

The strike at the Florida-based discount airline is the first strike at a U.S. passenger carrier in nearly five years, and the company said it would give affected customers a credit for the full amount of the flight plus 100 dollars of flight credit. The carrier offers flights in the United States, Latin America and the Caribbean.

The company's 430 pilots are represented by the Air Line Pilots Association (ALPA). Talks between the union and the company revolve mainly around pay, benefits and scheduling, but differences could not be bridged.

Although Spirit carries less than 1 percent of U.S. air-passenger traffic, about 6.1 million passengers last year, the strike could have implications throughout the airline industry. Airline unions across the country are watching the dispute closely as many are in contract negotiations or getting ready to begin talks.

The U.S. airline industry is better off now than in the past several years of restructuring, and unions are eager to regain pay and benefits lost during that period. Reports indicated low labor costs had helped Spirit to maintain profitability.

Go to Forum >>0 Comments