United Pilots Say US Airways deal potential deal "extremely negative"

[Pacemaker]

UAL pilots leader opposes any merger with US Air
Tuesday April 29, 5:35 pm ET

WASHINGTON (Reuters) - A merger between United Airlines, a unit of UAL Corp (NasdaqGS:UAUA - News), and US Airways Group Inc (NYSE:LCC - News) would be "extremely negative," United's pilots' union chief said on Tuesday.

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"While United has its own problems and issues ... US Airways' problems run even deeper," said Steve Wallach, chairman of the Air Line Pilots Association (ALPA) chapter at United.

Wallach said in a statement reports of advanced merger discussions between United and US Airways on Monday have generated "enormous concern" among pilots at United.

They point to potential problems of combining work arrangements and seniority of union employees at both companies, if a merger were proposed. US Airways has failed to integrate pilots following its 2005 merger with America West Airlines.

 

[givenup]

UAL pilots leader opposes any merger with US Air
Tuesday April 29, 5:35 pm ET

WASHINGTON (Reuters) - A merger between United Airlines, a unit of UAL Corp (NasdaqGS:UAUA - News), and US Airways Group Inc (NYSE:LCC - News) would be "extremely negative," United's pilots' union chief said on Tuesday.

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"While United has its own problems and issues ... US Airways' problems run even deeper," said Steve Wallach, chairman of the Air Line Pilots Association (ALPA) chapter at United.

Wallach said in a statement reports of advanced merger discussions between United and US Airways on Monday have generated "enormous concern" among pilots at United.

They point to potential problems of combining work arrangements and seniority of union employees at both companies, if a merger were proposed. US Airways has failed to integrate pilots following its 2005 merger with America West Airlines.

And Parker said:

"If done properly, (consolidation) could result in a much healthier industry which would be good for our employees, our customers and the communities we serve," Parker said.

While mergers can be tough on employees, US Airways has shown it can eventually run a smooth operation. After a horrible customer service record in 2007, the carrier now sits near the top of the industry in on-time arrivals.

It's also merged a number of employee groups from the two airlines onto a single contract, built a joint reservations system and started a flight operations center in Pittsburgh.

While he wants to merge his pilots contracts, Parker said he has no problem keeping them separate. The benefits of a combined pilot group would mean maybe $10 million in savings for the airline, Parker said, not much for an airline with $11.7 billion in annual revenue.

"There is no large financial benefit that we are not receiving because we don't have one integrated pilot contract right now or one seniority list," Parker said.

Could each list be merged on their own?

 

[luvthe9]

And Parker said:

"If done properly, (consolidation) could result in a much healthier industry which would be good for our employees, our customers and the communities we serve," Parker said.

A-West management do something properly, no way UAL is in serious trouble and could go chapter 11 again, leave them alone. Parker said a merge with US would be a money maker, he was wrong.

 

[WhatBag?]

I am so glad I am not a pilot and have to deal with the issues of left seat/right seat, upgrade/downgrade, and all the other issues that make merging you guys as one. Having said that, the pilot situation right now is ghastly! Can you blame the UAL pilots for saying this deal is "extremely negative"? I had to loosen my girdle thinking about that drama as I was hyper ventilating just thinking about it...not a pretty sight in my new blue zip up.


We are a mess! United is a mess! The Industry is a mess! Combining US and UA would be a big old mess! Where's my scarf?

 

[deltawatch]

I starting to think United faces another BK, and then will be sold in pieces to AA, US, WN, CO.

 

[Hi-C-Camp]

I starting to think United faces another BK, and then will be sold in pieces to AA, US, WN, CO.

Maybe, but I don't think anytime soon, UAL will start spinning off assests b/f it heads into BK... It has over 3 billion in assets it could release and then some others like MP etc.... I think Tilton has some creative handwriting going on...

 

[smoot4208]

Again, airlines do not just sell pieces of their airlines to other airlines.

 

[Pacemaker]

I think it's interesting that the UAL MEC released no similar statement when their company was in serious talks with CAL.

It's also telling that there's no "Keep Delta My Delta" campaign this time around with NW.

 

[prechilill]

I think it's interesting that the UAL MEC released no similar statement when their company was in serious talks with CAL.

It's also telling that there's no "Keep Delta My Delta" campaign this time around with NW.

Speaks volumes that the UAL pilots have a problem with USAir, just like in 2000. When I came to America West the whole United buyout movement was in full swing. It is funny I don't ever remember the UAL pilots having problems with AWA.

 

[FlyDCJets]

Again, airlines do not just sell pieces of their airlines to other airlines.

Yes they do, UAL bought the Pan Am Pacific Assets, along with the LHR slots from them. TWA sold the LHR landing slots to AA.

 

[Hi-C-Camp]

Yes they do, UAL bought the Pan Am Pacific Assets, along with the LHR slots from them. TWA sold the LHR landing slots to AA.

your right - if you are in Chapter 7 or going that way, US tried to buy all of DAL assets and that didn't work, and they were even willing to overpay for them... Dingy Deltoids

 

[prechilill]

Yes they do, UAL bought the Pan Am Pacific Assets, along with the LHR slots from them. TWA sold the LHR landing slots to AA.

Delta bought Pan Am A310s and the Atlantic operation.
American bought the Caribbean ops of bankrupt Eastern from Texas Air.
USAirways doesn't have much to offer internationally, but they do have the DCA operation which would be worth something. If the UAL deal falls through I would think Parker would be looking at alternatives because Parker is basically a professional house flipper, only he deals with airlines. THat is how he makes most of his money because we can all see he is not the strongest visionary in customer service or product building.
One last thought, the UAL MEC is a very powerful and influential group. The pilots have the resources and unity to be a force to be reckoned with on the highest levels of management. So far Parker has been able to let the USAirways pilot situation take a life of its own and remain out of it. That may soon change if a potential merger with United is in jeopardy. (Personally, I do not blame the UAL pilots for their concerns- they only need to see the problems which have been introduced into the lives of AWA pilots since merging with USAirways as a clue of what would be in store for them.) This latest development certainly is interesting and I applaud the UAL pilots for their efforts to insulate themselves from this mess.

 

[ChrisUS]

Speaks volumes that the UAL pilots have a problem with USAir, just like in 2000. When I came to America West the whole United buyout movement was in full swing. It is funny I don't ever remember the UAL pilots having problems with AWA.

Of COURSE they had a problem with USAir. It's a senior airline. They would have to give up a treasured spot most likely. AWA was a very junior airline. They would have LOVED to merge with them and be senior to everyone. Only after THAT would have happened would they be in the same mess US is now. Doesnt take a rocket scientist here.

 

[autofixer]

I think we should be objecting to the premise that UAL is in the driver's seat in this potential merger. I think it speaks volumes that CAL ran away as fast as they could, after looking over the books at UAL. UAL is in a World of hurt, so who cares what their pilots think? It is ironic that LCC has one of the best balance sheets in the industry right now (despite horrible management) and UAL is a mess, even after CH 11.

 

[ableoneable]

I think we should be objecting to the premise that UAL is in the driver's seat in this potential merger. I think it speaks volumes that CAL ran away as fast as they could, after looking over the books at UAL. UAL is in a World of hurt, so who cares what their pilots think? It is ironic that LCC has one of the best balance sheets in the industry right now (despite horrible management) and UAL is a mess, even after CH 11.

I can see it from the United Pilots' perspective. Were I in there shoes I would want no part of this mess.

However, it looks better from this side of the fence. It would be great to be rid of the toxic USAirways name.