Aviation News

April 20, 2012

American Airlines Unions Back US Airways Takeover

Two American Airlines MD-80s parked at the gate in Nashville. (Photo by Matt Molnar)
Two American Airlines MD-80s parked at the gate in Nashville. (Photo by Matt Molnar)
All three unions representing American Airlines employees have agreed to back a merger with US Airways, but no deal for a purchase is yet in place.

The Allied Pilots Association, the Transport Workers Union and Association of Professional Flight Attendants, which represent 55,000 American Airlines workers, issued a joint statement Friday morning indicating their support of such a deal, should it come to fruition.

ALLIED PILOTS ASSOCIATION, ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS AND TRANSPORT WORKERS UNION JOIN IN SUPPORT OF AMERICAN AIRLINES-US AIRWAYS MERGER

Union Leaders Pursue Best Path to Restore American Airlines to Preeminence

Fort Worth, Texas (April 20, 2012) — The Transport Workers Union (TWU), the Association of Professional Flight Attendants (APFA) and the Allied Pilots Association (APA) issued the following joint statement today:

“On behalf of nearly 55,000 American Airlines front-line employees—including the 17,000 members of the Association of Professional Flight Attendants, the 10,000 members of the Allied Pilots Association and the 26,000 members of the Transport Workers Union—we are pleased to confirm our support of a possible merger between our airline and US Airways. We have reached agreements on terms sheets for collective bargaining agreements that would govern the American Airlines employees of the merged airline with US Airways.

“This significant step represents our shared recognition that a merger between American Airlines and US Airways is the best strategy and fastest option to complete the restructuring of American Airlines, enabling it to exit the Chapter 11 bankruptcy process and restore American Airlines to a preeminent position in the airline industry.

“As envisioned, a merger of US Airways and American Airlines provides the best path for all constituencies, including employees of both American Airlines and US Airways. The contemplated merger would be based on growth, preserve at least 6,200 American Airlines jobs that would be furloughed under the company’s standalone strategy, and provide employees of both American and US Airways with competitive, industry-standard compensation and benefits. Over the long term, the combined new airline would support greater job security and advancement opportunities for both American Airlines’ and US Airways’ employees that are far superior to those available to employees at either airline on a stand-alone basis. Importantly, by avoiding a lengthy and contentious 1113 process, the new carrier would be able to emerge from bankruptcy more quickly.

“A merger would create a foundation to establish American Airlines as a vigorous competitor of the two larger network carriers and the industry at large. Customers of both airlines and air travelers in general will benefit greatly from a viable third network carrier and significantly enhanced travel choices.”

Also Friday morning, US Airways filed a Form 8-K with the Securities and Exchange Commission notifying investors of the union agreement, but also noting that no deal has been reached to actually buy American.

On April 20, 2012, US Airways Group, Inc. (the “Company”) announced that it had reached agreements for collective bargaining agreements that would govern the American Airlines employees represented by the Transport Workers Union, Association of Professional Flight Attendants and Allied Pilots Association.

The effectiveness of these agreements is contingent upon a business combination involving the Company and AMR Corporation, the parent of American Airlines, in connection with the pending bankruptcy case of AMR Corporation. No agreement for that business combination has been reached.

US Airways has long been touted as the most likely merger partner for American. US Airways began buying up merger-related domain names last month.