The American/US Airways Merger: The View from 35,000 Feet
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By: Ken McQuillan
December 20, 2013
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(Photo: Getty Images)
Now that the merger between American Airlines and US Airways has
closed, we’ll take a look at how this newly formed mega-carrier will operate, specifically, from the pilot’s point of view.
Mergers in the airline industry are certainly not a new concept. In reality, it’s tough to find a current airline employee who hasn’t experienced at least one merger first-hand, and many have been through multiple mergers. What
is new this time around is the sense that this merger between American and US Airways is being received by most involved with open arms, or at least an open mind, which, given the combined history of the airlines involved, says a lot.
The American Airlines and US Airways that existed prior to this week’s merger were both products of previous mergers, so the optimism regarding the New American Airlines cannot be fully appreciated until we understand the past.
West meets East
Without a doubt, the largest collective sigh of relief this week came from the middle of the desert southwest. Phoenix to be exact. This is where the former America West pilots have been dug-in for more than eight years, battling it out with pilots and their union from the former US Airways, in an effort to enforce an arbitrator’s ruling regarding the one thing that some pilots have compared to Superman’s Kryptonite: Seniority.

Although America West and US Airways merged in 2005, pilot groups from both airlines still maintain a split personality.
Seniority is everything to an airline pilot. It determines when a pilot will fly, how often, what routes, which equipment, and how much they will be paid. Seniority also determines which seat they will occupy in the cockpit, and how long they will have to wait to move into the left seat.
In 2005, a financially solvent America West Airlines bought US Airways out of bankruptcy, creating one larger airline that kept the US Airways name. At the time of the merger, the pilots from each airline were represented by the Air Line Pilots Association, known as ALPA. The America West pilots felt that because their airline rescued US Airways, the “West” pilots should at least get a fair blending in the seniority list with the “East” pilots. However, the East pilots saw things a bit differently, and thought that seniority should be determined by date of hire, which would have benefitted the East pilots more than the West because of the fact that US Airways is the older carrier, and thus many of its pilots have earlier hire dates.
The seniority battle between the East and West pilots went to arbitration, and in 2007, a blended seniority list was created, called the Nicolau Award, named for its creator, George Nicolau. This new binding seniority list didn’t sit well with the East pilots, as it placed some West pilots with later hire dates, but more longevity (actual time on the job, as opposed to being furloughed), ahead of some East pilots, many of whom had earlier hire dates than West pilots, but were furloughed at the time of the merger. The West pilots accepted the Nicolau list, however, it wasn’t considered an all-out victory because of the fact that the East pilots were awarded the top 517 slots on the list, and the most senior West pilot was at number 518.
The US Airways pilot group was twice the size of the America West pilot group at the time of the merger, so subsequently, and some would say illegally, the East pilots never adopted the Nicolau Award, and voted out ALPA as their union, and formed a new union. The US Airline Pilots Association (USAPA) became the bargaining group that purportedly would represent all of the combined pilots, much to the chagrin of former America West pilots, who felt that USAPA would not fairly represent them.
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