As a merger between American Airlines and US Airways appears imminent, early today, US Airways Management announced that they have signed agreements with three of the unions involved. The agreements were reached with the unions which represent American Airlines employees, Allied Pilots Association (APA), the Association of Professional Flight Attendants (APFA), and the Transport Workers Union (TWU).
According to a joint statement from the three unions, they are in support of the proposed merger with US Airways. “On behalf of nearly 55,000 American Airlines front-line employees—including the 17,000 members of the Association of Professional Flight Attendants, the 10,000 members of the Allied Pilots Association and the 26,000 members of the Transport Workers Union—we are pleased to confirm our support of a possible merger between our airline and US Airways. We have reached agreements on terms sheets for collective bargaining agreements that would govern the American Airlines employees of the merged airline with US Airways.”
Meanwhile the USAPA, which represents the over 5,000 pilots who fly for US Airways, has been in talks with representatives from the APA, and have will hold a meeting with one another next week to discuss the details of a potential merger.
“The pilots from American Airlines and US Airways have a lot in common,” USAPA President Captain Gary Hummel stated. “After the 9/11 attacks, American pilots took billions in contract concessions that remain in effect. Likewise, the US Airways pilots lost their pensions and gave up more than $7 billion in wage and benefit concessions in order to keep their airline solvent. There have been very few tangible benefits for US Airways pilots as a result of the 2005 Merger with America West, which still has not been fully completed.”
Captain Hummel went on to say, “We look forward to working with our contemporaries at American Airlines; however, if a deal is made, it must include a solid and mutually beneficial commitment by our Management that recognizes the sacrifices the pilots have made to keep these two airlines flying.”
The remainder of the joint statement from the unions at American Airlines continues below:
“This significant step represents our shared recognition that a merger between American Airlines and US Airways is the best strategy and fastest option to complete the restructuring of American Airlines, enabling it to exit the Chapter 11 bankruptcy process and restore American Airlines to a preeminent position in the airline industry.
“As envisioned, a merger of US Airways and American Airlines provides the best path for all constituencies, including employees of both American Airlines and US Airways. The contemplated merger would be based on growth, preserve at least 6,200 American Airlines jobs that would be furloughed under the company’s standalone strategy, and provide employees of both American and US Airways with competitive, industry-standard compensation and benefits. Over the long term, the combined new airline would support greater job security and advancement opportunities for both American Airlines’ and US Airways’ employees that are far superior to those available to employees at either airline on a stand-alone basis. Importantly, by avoiding a lengthy and contentious 1113 process, the new carrier would be able to emerge from bankruptcy more quickly.
“A merger would create a foundation to establish American Airlines as a vigorous competitor of the two larger network carriers and the industry at large. Customers of both airlines and air travelers in general will benefit greatly from a viable third network carrier and significantly enhanced travel choices.”