An application by Wizz Air Holdings PLC (AIM:WIZZ) to launch transatlantic charter flights have run into rough weather across the pond from major US carriers American Airlines and Southwest Airlines (NYSE:LUV).
Pilot union Air Line Pilots Association and the Independent Pilots Association questioned whether the European low-cost carrier's anti-union policies would endanger flight safety.
The FTSE 250 company has been revealed to have submitted an application to Washington to obtain an initial foreign air carrier permit to allow its first transatlantic flights.
It is being sought initially for the purposes of beginning cargo operations between Hungary and the US, according to the Daily Telegraph.
The Allied Pilots Association, the union representing American Airlines pilots, urged the US Department of Transportation (DOT) to deny Wizz Air's application under reciprocal recognition procedures for US-EU, saying that the application's current form was “procedurally and factually inadequate” regarding the details of the planned service.
Furthermore, the European budget carrier's "established anti-union record, poor labour standards, questionable safety culture, the impact its foreign carrier permit would have on competition, and its issues with consumer access and protection" have been noted by the association, in their statement to the DOT.
As long as the application is not outrightly denied, the DOT should not expedite the approval but delay approval until Wizz Air meets the conditions required of all carriers operating international services in the US, the union's note stated.
Meanwhile, Southwest Airlines (NYSE:LUV) pilots said Wizz's application omitted "fundamental data," including frequency of operations and locations serviced in the US. As part of their submission, they also warned that Wizz would undermine labour standards.
In a similar vein, the Air Line Pilots Association is concerned that Wizz Air may target employees who may refuse to work overtime or call in sick.
Wizz's US application also omitted information such as the frequency of service and US locations that will be served, according to one US union complaint.
Long haul carriers worried
In light of the recent closure of budget transatlantic carrier Norwegian Air, Wizz's US application is likely to also generate fear among long-haul airlines such as British Airways and Virgin Atlantic.
Norwegian's low prices posed a threat to British Airways' and Virgin Atlantic's highly profitable transatlantic flights.
In a joint venture with the sovereign wealth fund ADQ, WizzAir already operates a small long-haul service between Abu Dhabi and Eastern Europe.