AMR Group Still Reluctant To Tie The Knot

Three of the principal unions representing workers for American Airlines have reportedly made a deal with US Airways Group to convince bankrupt AMR group to start merger talks with its rival airline.

Reuters reports that the unions and US Airways announced the deal Friday. The unions say a merger would help keep jobs that will be lost if American continues on its path to emerge from Chapter 11 status as a stand-alone airline. But American, which is the nation's third-largest carrier, had so far taken a "talk to the hand" attitude about merger discussions.

The Transport Workers Union (TWU), the Association of Professional Flight Attendants (APFA) and the Allied Pilots Association (APA) issued the following joint statement Friday:

“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.”

FMI: www.usairways.com, www.alliepilots.org. www.aa.com