US Airways Shares Slip Despite Merger Chance, Strong Demand
Regarding the possibility of a merger with bankrupt AMR, McKenzie wrote "we like the combination, assuming no overpayment," partially because mergers in bankruptcy are preferable to mergers outside bankruptcy. While American management remains opposed to a merger, McKenzie said a deal "could provide US Airways a path to resolving the seniority dispute" between pilot groups, which have failed to sign a joint contract nearly seven years after a 2005 merger. "If US Airways merges with another airline, we presume a new collective bargaining agreement would be negotiated among the three pilot groups," McKenzie wrote.
Lee Moak, president of the Air Line Pilots Association, voiced a similar view last month during a conference call with reporters. "I think what's going on with the American Airlines bankruptcy brings renewed focus onto the US Airways/America West matter," Moak said. "You end up with an opportunity to finally address that situation," he said. "I'm encouraged right now, with current [merger and acquisition] activity, that it will put that matter to bed."
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Regarding the possibility of a merger with bankrupt AMR, McKenzie wrote "we like the combination, assuming no overpayment," partially because mergers in bankruptcy are preferable to mergers outside bankruptcy. While American management remains opposed to a merger, McKenzie said a deal "could provide US Airways a path to resolving the seniority dispute" between pilot groups, which have failed to sign a joint contract nearly seven years after a 2005 merger. "If US Airways merges with another airline, we presume a new collective bargaining agreement would be negotiated among the three pilot groups," McKenzie wrote.
Lee Moak, president of the Air Line Pilots Association, voiced a similar view last month during a conference call with reporters. "I think what's going on with the American Airlines bankruptcy brings renewed focus onto the US Airways/America West matter," Moak said. "You end up with an opportunity to finally address that situation," he said. "I'm encouraged right now, with current [merger and acquisition] activity, that it will put that matter to bed."
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