David Cotton, CEO of Flying Food Group, has expressed concerns over the financial challenges posed by high wage requirements and union-related issues at Los Angeles International Airport (LAX). In a letter to Los Angeles World Airports (LAWA), Cotton said that these factors have made LAX the most financially difficult airport for operations, potentially jeopardizing jobs and service quality.
“We employ nearly 1,000 people in the L.A. metro area and are the only U.S.-owned airline caterer,” said Cotton, Chief Executive Officer. “Contrary to Local 11’s claims we have not made a profit from our Inglewood facility since 2019. Employees have told us that Local 11 failed to enroll them in the health plan because they did not back the union. The LWO wage and health care requirements make LAX the most financially difficult environment that we operate in.”
The Bureau of Contract Administration outlines that the Los Angeles Living Wage Ordinance mandates employers with city contracts, leases, or financial assistance to pay a designated living wage and provide health benefits or a wage supplement. This ordinance applies to entities operating at LAX and aims to ensure fair compensation for workers involved in taxpayer-supported work. Compliance is required regardless of whether employees work within or just outside city boundaries if tied to city operations. The ordinance also affects subcontractors and impacts thousands of workers at facilities like LAX.
According to IBISWorld’s U.S. industry report on airline catering services, the sector had total revenues of approximately $4.5 billion in 2024 but faces narrow average profit margins due to high fixed labor and food costs. The report indicates that municipal wage mandates and rising labor standards at major hubs like LAX have introduced financial strain for service providers. Companies operating across airports encounter difficulties in standardizing wages and benefits, leading to regional disparities in cost structures.
The National Labor Relations Board (NLRB) allows workers to file a decertification petition to remove union representation if at least 30% of employees in a bargaining unit support the move. Elections may be delayed if Unfair Labor Practice charges are pending, especially when such claims could affect employee free choice. According to the NLRB’s official guidance, petitions can be held until these charges are resolved, prolonging uncertainty for both employees and employers.
Cotton has been affiliated with Flying Food Group for many years, having worked closely with founder Sue Gin. He served as CFO for two decades before becoming CEO and was previously a consultant for the company. Under his leadership, Flying Food Group continues its growth by adding new airline customers and expanding geographically. Cotton holds an MBA with high honors from the University of Chicago Graduate School of Business and a BA in Economics from Yale University.
