BUSINESSWEEK ONLINE : NOVEMBER 13, 2000 ISSUE
MANAGEMENT How United's Labor Woes Are Spreading ME, TOO United's generous settlement with pilots made other employees jealous. Delta pilots are now asking for hikes of up to 28%; Northwest mechanics want raises averaging 117%; and even if the UAL takeover does not go through, US Airways will have to bump up pilot pay by 14%. HEAVIER LOADS As airlines cough up more cash for higher labor costs, their earnings are expected to level off or drop. That's on top of big increases in jet-fuel costs, which are up 42% for United this year. GUESS WHO PAYS? Airlines will try to recoup higher labor costs by boosting fares, just as they did with fuel increases. The Business Travel Coalition expects a minimum 10% hike in business fares next year to cover wage hikes, rising to 30% if a UAL-US Airways deal triggers other megamergers. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _					RELATED ITEMS Will United's Woes Spread? CHART: While Service Woes Slam United's Customers... CHART: ...And Slow the Airline's Growth...Wall Street Punishes Its Missteps TABLE: How United's Labor Woes Are Spreading The DC Air Deal: More Likely to Stall Than Fly ONLINE EXTRA: United's James Goodwin: ``We Didn't Cave'' INTERACT E-Mail to Business Week Online

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