Monday December 31, 2012
Pilot union plans for possible American-USAir merger
WASHINGTON: The American Airlines pilots union has approved a salary plan for US Airways pilots that would come into play should the two companies merge.
The union's board approved the plan by an 11-5 vote, it said Saturday, without giving any details of the proposal.
The proposal must now be considered by the management of the two airlines as well as by the union of US Airways pilots.
But, the union said, "if there is no merger between the two carriers, the MOU (memorandum of understanding) would be rendered null and void."
"Due to a judicially enforceable non-disclosure agreement and relevant Securities and Exchange laws, APA (Allied Pilots Association) cannot disclose the terms that our Board has approved at this juncture," it said in a statement.
American Airlines filed for bankruptcy in November 2011 with the principal goal of reducing the salaries of its pilots, which, it said, hurt its competitiveness. After months of negotiations, the pilots union and the management reached a deal in early December that paved the way for the airline to exit bankruptcy.
US Airways, a competitor, has meanwhile been pressing for a merger with American Airlines, a project supported by its employees, though the management has so far been reluctant.
A merger could technically take place before the company is released from bankruptcy proceedings.
American Airlines has asked the bankruptcy court for until March 11 to submit its final restructuring plan. - AFP