Pilots Union: American Airlines-US Airways Merger Unlikely During Bankruptcy Proceedings

By Paul Riegler on 28 December 2012
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The union that represents American Airlines’ pilots has told its members that a merger DSC_0478between the airline and US Airways may not take place during American’s bankruptcy proceedings because pilot groups may not agree on interim contract terms.

If a consensus is not reached “in the very near future,” said Keith Wilson, president of the Allied Pilots Association in a message to its members, “in all likelihood there will be no merger before American Airlines exits restructuring.”

An interim agreement would set wages, working conditions, and seniority terms until a joint contract could be negotiated.

The union still believes that a “merger with US Airways is essential for both carriers and represents the quickest way to recapture the critical mass essential to competing effectively with those two carriers,” he said.

A combination of American Airlines, currently the nation’s third-largest carrier, with US Airways, the nation’s fifth, would create the world’s largest airline and surpass United Continental Holdings, the airline that was formed in 2010 following the merger of United Airlines and Continental.

American Airlines has stated it prefers to wait until after it exits bankruptcy court to assess a potential merger.  US Airways has been publicly pushing for a tie-up since the beginning of the year.

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