Monday, December 31, 2012

Keep up with the latest US Airways-American merger news

There's a merger in the air, literally and figuratively, as US Airways and American Airlines move closer to a possible marriage that's been more than a year in the making.

This blog will be a place to gather and distribute the latest news from around the web about that merger and those it affects, supplementing the Observer's regular coverage. The list of those who could be affected is long: Tens of thousands of employees (7,100 of whom are based in Charlotte), millions of travelers, and everyone in Charlotte who benefits from the city's status as US Airways' busiest hub.

So, where do things stand now? Tempe, Ariz.-based US Airways has been pursuing a merger with Fort Worth-based American since the latter entered bankruptcy protection in Nov. 2011. Although American initially resisted any attempt at a tie-up, US Airways' CEO Doug Parker secured the support of American's key unions and ended up maneuvering American into starting merger talks.

Now, talks have progressed to the point that both pilot unions (American's Allied Pilots Association and US Airways' U.S. Airline Pilots Association), both flight attendant unions, and management from both companies are working on finalizing preliminary terms. American's pilot union over the weekend approved a memorandum of understanding outlining what the terms of a merger contract could look like, and USAPA could soon do the same.

The board of directors of AMR Corp., American's parent company, are meeting Wednesday, Jan. 9, and could discuss a merger proposal if they have one by then. But some people with knowledge of the discussions have said it's not certain that there will be a finished, formal approval

There are still plenty of variables and complications that could snarl a merger. Not all of American's pilots want one. And it appears some unhappy US Airways employees feel the same way. American's management reportedly still favors emerging from bankruptcy as a standalone carrier. And without quick action outlining terms of a merger for unions, some are saying that a merger before American comes out of bankruptcy is unlikely.

And if you'd like to get in touch with me to share news or your thoughts, email me at elyportillo@charlotteobserver.com or call me at 704-358-5041.

Here are some of the most recent headlines from around the Web:
TheStreet.com: US Airways Pilots, After Long Wait, Want Payoff From AMR Merger

Dallas Morning News: American Airlines’ pilot group provides update on interim agreement talks

Wall Street Journal: AMR pilot board's vote could ease path to merger

Charlotte Observer: What's at stake if US Airways, American merge?

1 comments:

Anonymous said...

thanks for share.