US Airways takes a step toward merging with American Airlines: Philly.com

Posted: April 22, 2012 in Airlines, Aviation & Airports (General News), USA
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[Philly.com] US Airways on Friday took a step toward merging with bankrupt American Airlines as it reached agreements with American’s unions for pilots, flight attendants, and mechanics.US Airways on Friday took a step toward merging with bankrupt American Airlines as it reached agreements with American’s unions for pilots, flight attendants, and mechanics.

A US Airways-American merger would form the world's biggest airline. American opposes the plan.

A US Airways-American merger would form the world's biggest airline. American opposes the plan

The three unions, which represent about 55,000 American employees, announced their support of a merger, which would create the world’s largest airline under the American Airlines name.

American said it would continue its efforts to emerge from bankruptcy as a stand-alone company.

Philadelphia is one of US Airways’ three main hub cities and would remain a hub for the merged airline, according to US Airways chief executive Doug Parker.

“Our intention would be to put our two complementary networks together, maintaining both airlines’ existing hubs and aircraft, and create an airline that could compete successfully with United, Delta and other carriers within our industry,” Parker wrote in a letter to employees on Friday.

“We have concluded that a merger with American, while they are undergoing their bankruptcy restructuring, represents a unique opportunity that we should not ignore,” Parker wrote.

Parker said a merged airline would save at least 6,200 of 13,000 jobs that would be lost under American’s go-it-alone plan.

The unions oppose American’s plan to eliminate the 13,000 union jobs and cut labor costs to return to profitability. American is seeking to throw out contracts with the unions that govern pay, benefits and work rules, and impose its own terms on employees.

US Airways and the unions said they had agreed on terms for collective bargaining agreements if there is a merger between the airlines…..

Read the full story at Philly.com….


Sun, Apr. 22, 2012
By Paul Nussbaum, Inquirer Staff Writer


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