J. Randolph Babbitt

ALPA President

In 1990, Babbitt’s experience and loyalty to Eastern and ALPA paid off as the union named him president for a four-year term. He quickly made headlines, and became the first ALPA president to endorse a national presidential contender, publicly siding with 1992 Democratic candidate Bill Clinton (D)."ALPA President Breaks With Tradition, Endorses Clinton," Commuter Regional Airline News Phillips Business Information, Inc., Sept. 7, 1992 As ALPA head, Babbitt’s main battles involved employee layoffs, which he often blamed on increasing deregulation of the airline industry. “I thought the airline industry hit rock bottom four times, but each time I say that it gets worse," said Babbitt in 1992. “I'll say once again, we've seen the worst. The industry is in its lowest ebb since the 1960s.”West, Karen, "Deregulation Doesn't Fly, Pilots Chief Says," Seattle Post-Intelligencer, July 8, 1992

Babbitt’s other top priority as ALPA president was the July 1994 employee purchase of a 55-percent stake in United Airlines, making it the largest employee-owned company in the U.S. ALPA played a large role in engineering the deal, but  employees had to concede some wages and hours.Labich, Kenneth, "One of the nastiest, most prolonged corporate battles in memory came to an...," Fortune, Aug. 22, 1994

In 1994, the pilot union chose to re-elect Babbitt for a second term as its president. In 1995, Babbitt successfully convinced the FAA to adopt a single rules standard for major airline carriers and regional airline carriers. He chose to leave his ALPA post in 1998.

Consultant

After leaving ALPA, Babbitt started his own consulting firm called Eclat.

In 2007, the international management consulting firm Oliver Wyman purchased Babbitt’s business and Babbitt joined the New York-based company as a partner in the company’s aviation practice.

Employee Ownership

Babbitt has twice worked on high-profile negotiations to obtain employee ownership of struggling airline companies. In 1994, United Airlines parent company UAL Corp. had suffered three straight years of crippling losses that ranged from $1 billion to $50 million.Labich, Kenneth, "One of the nastiest, most prolonged corporate battles in memory came to an...," Fortune, Aug. 22, 1994 The airline needed to decrease its labor costs as sales began to decline because of the success of discount airlines like Southwest. Through Babbitt at ALPA and the International Association of Machinists, UAL eventually agreed to give 55% ownership to the employees of United. In exchange, United employees agreed to wage cuts and changes in worker-hour rules.Labich, Kenneth, "One of the nastiest, most prolonged corporate battles in memory came to an...," Fortune, Aug. 22, 1994 

In 2000 as a private consultant, Babbitt worked for employees of Aerolineas Argentinas, which was seeking a buyer after suffering heavy losses. Three of the airlines employees’ unions hired Babbitt to help save the airline and their jobs.

Babbitt devised a plan in which the employees would help purchase their airline with the help of a partner. The employees negotiated with the German airline Lufthansa, Air France, and Air Malaysia; those attempts failed.Weiner, Dawn, "Aerolineas Argentina's Union Plan Gains More Govt Support," Dow Jones International News, sep 12, 2000 But with the help of Babbitt, Aerolineas managed to convince its largest shareholder, Spain’s state-owned government holding company, SEPI, to inject $600 million into Aerolineas, saving it from destruction. Spain’s Marsan Group purchased Aerolineas in October 2001.Druckerman, Pamela, "Companies: Spain and Argentina Reach an Accord To Save Aerolineas," The Wall Street Journal Europe, Oct. 16, 2000   

Feuds

While heading ALPA, Babbitt had a memorable run-in with a former airline executive, who is blamed for ending the 60-year-old Eastern Airlines. Frank Lorenzo headed Texas Air Corp., which owned Eastern and Continental airlines, among others. Lorenzo refused to negotiate with unions, and led two different airlines into bankruptcy, including Eastern in 1989. Eastern’s employees went on strike, and the company that both Babbitt and his father worked at was forced to fold in 1991. Lorenzo stepped down in 1990 from Texas Air.O'Brian, Bridget, "till Grounded: For Lorenzo, Getting A New Airline Aloft Is Proving Treacherous," The Wall Street Journal, Jan. 25, 1994

But in 1993, Lorenzo tried to  re-enter the airline business by starting a boutique company called Friendship Airlines. Babbitt and ALPA adamantly opposed Lorenzo’s attempt to get back into the airline business in any way. Before Lorenzo had even announced his decision, ALPA issued a press release urging the Department of Transportation to deny any request from Lorenzo to start an airline. The union called Lorenzo “the very embodiment of evil.”O'Brian, Bridget, "till Grounded: For Lorenzo, Getting A New Airline Aloft Is Proving Treacherous," The Wall Street Journal, Jan. 25, 1994 Then at a luncheon at the Aero Club in Washington, D.C., Lorenzo walked up to a table of pilot union leaders that included Babbitt, and said “I thought I smelled something.”O'Brian, Bridget, "till Grounded: For Lorenzo, Getting A New Airline Aloft Is Proving Treacherous," The Wall Street Journal, Jan. 25, 1994 Lorenzo claimed it was a joke, but the hostility continued. Lorenzo was denied a government operating license in 1994.