David Cotton, Chief Executive Officer of Flying Food Group, has expressed concerns over high wage requirements and union-related challenges at Los Angeles International Airport (LAX), which he claims have made it the most financially challenging airport to operate in. Cotton said that these issues put jobs and service quality at risk in a letter addressed to Los Angeles World Airports (LAWA).
“We employ nearly 1,000 people in the L.A. metro area and are the only U.S.-owned airline caterer,” said Cotton. “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 has reported that the Los Angeles Living Wage Ordinance mandates employers with city contracts, leases, or financial assistance, including those operating at LAX, to pay a designated living wage and provide health benefits or a wage supplement. The ordinance aims to ensure fair compensation for workers supported by taxpayer funds. Compliance is required regardless of whether employees work within or just outside city boundaries if tied to city operations. This ordinance also applies to subcontractors and affects 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, with narrow average profit margins due to high fixed labor and food costs. The report notes that municipal wage mandates and rising labor standards at major hubs like LAX have introduced financial strain for service providers. Companies operating across airports face difficulty standardizing wages and benefits, contributing to regional disparities in cost structures.
The National Labor Relations Board (NLRB) permits workers to file a decertification petition to remove union representation if at least 30% of employees in a bargaining unit support the move. Elections are sometimes delayed if Unfair Labor Practice charges are pending, particularly when they involve claims that could impact employee free choice. According to the NLRB’s official guidance, petitions can be held in abeyance until such charges are resolved, prolonging uncertainty for both employees and employers.
Cotton is CEO of Flying Food Group and affiliated companies. Working closely with founder Sue Gin, he served for two decades as CFO of Flying Food Group and was previously a consultant to the company. Under his leadership, the company continues to grow by adding new airline customers and expanding its geographic presence. He earned his MBA with high honors from the University of Chicago Graduate School of Business and a BA in Economics from Yale University.
