After receiving a books and records request from the National Center for Public Policy Research related to United Airlines’ suspension of flights to Israel, United will resume flights between New York and Tel Aviv on March 18, according to sources.
In the letter, the National Center stated:
Stockholder is concerned that United’s refusal to fly to Israel reflects management acquiescing to the woke politics of United’s union leaders, instead of valid safety or business concerns….
Stockholder is concerned that undisclosed union-driven political considerations, particularly from the Association of Flight Attendants-CWA (AFA-CWA) and its leader Sara Nelson, may have played a substantial role in the decision to suspend flights, potentially undermining shareholder interests and exposing the Company to financial, reputational and legal risks.
The financial harm caused by this decision is evident. United’s stock price fell by 16.6% following the suspension of flights to Israel, reflecting investor concerns about the rationale and impact of this decision. Competitors like El Al, which continued operating flights during the same period, experienced a 60% increase in stock price from October 7, 2023, to December 15, 2024, by capturing significant market demand….
To determine whether union pressure improperly influenced the decision, Stockholder seeks to review documents and records necessary to understand the role union demands played in the Company’s decision-making process. If operational decisions are being shaped by union pressures rather than financial merit, the Board and senior management may be failing to fulfill their fiduciary duty to prioritize and safeguard stockholder value.
“The National Center will not stand by while corporations take positions that raise the specter of antisemitism,” said the National Center’s Free Enterprise Project Executive Director Stefan Padfield.
Padfield also thanked the National Center’s allies in this action, including Rabbi Dr. Mark Goldfeder, Esq., Director of the National Jewish Advocacy Center; corporate law scholar Professor Anat Alon-Beck; Ben Schlager at Goldfeder & Terry; and Jason Torchinsky of Holtzman Vogel.
