US Airways/America West Merge

[Kip Powick]

TEMPE, Ariz. May 20, 2005 — US Airways and America West, two struggling airlines that serve opposite sides of the country, are billing their proposed merger as a buffer against the new era of low-cost rivals, high fuel costs and a flood of cheap fares.

If the combination gets government, shareholder and labor approvals, the new company would become the nation's No. 6 airline in terms of passenger miles, an industry measure.

It will fly under the US Airways name, which enjoys far better recognition among East Coast business travelers, the companies said Thursday.

The combined company has attracted $1.5 billion in new capital from several investors, including a $250 million loan from Airbus. The European aircraft maker has long been a supplier to both airlines.

US Airways Group Inc. has a strong presence on the East Coast and in the Caribbean, while America West Holdings Corp. operates across the West. The goal is to form a stronger airline that would compete better with lower-cost rivals such as Southwest Airlines Inc. and JetBlue Airways Corp.

"These two airlines are so much stronger together," said Doug Parker, America West Holdings' president and CEO. He will serve as chief executive of the combined company.

The merged airline will be based in Tempe, America West's home. The airlines plan to merge their frequent flier programs, with current members retaining their full mileage balances.

US Airways President and CEO Bruce Lakefield said the merger will ensure US Airways' long-term viability and the security of its employees.

Parker said he was not sure how many jobs would be cut if the merger goes through. US Airways employs about 30,000, including 600 at its headquarters in Arlington, Va. America West employs about 14,000.

"I don't anticipate any major furloughs over and above" those that have already been occurring, Parker said.

JR Baker, head of the America West unit of the Air Line Pilots Association, said the group will keep an open mind as it examines the deal but is prepared to defend its members.

[wizard]

I think the merged airline will have 38,000 employees ? So that's about 6,000 jobs lost.

[AME]

This is from last week

Pilots ask union leader to resign

By John Yantis, Tribune

The leader of union pilots at America West Airlines stepped down late last week in the midst of merger talks between the Tempe carrier and bankrupt US Airways.

Master Executive Council chairman CJ Szmal resigned Friday at the request of a majority of the six pilot representatives who make up the council, said JR Baker, acting vice chairman of the union.

"I just think with discussions heating up between America West and US Airways, the MEC wanted to make sure they had their leadership team in place," said Baker, who assumed Szmal’s duties and is expected to become chairman once union heads meet later this week.

"It’s a team that will vigorously protect and defend the careers of America West pilots."

An all-out merger between America West and US Airways would entail cutting some routes. The Wall Street Journal reported Monday that General Electric, the largest creditor of both carriers, has said it would be eager to reduce its overall exposure by taking back 60 leased aircraft and some engines from the combined fleet.

Seniority lists for pilots and flight attendants would be put together should the two carriers merge. While US Airways, which has been flying since the 1940s, has slashed labor costs, it is traditionally seen as the higher- cost, more laborfriendly airline.

Because no deal has been reached and there’s still a possibility the two sides will decide against a partnership, Baker said there is no way of telling how the merger is being viewed by the rank and file.

"We don’t have any tangible information on that," he said.

"When and if it happens, then we’ll deal with it at that time."

Szmal could not be reached for comment.

The union has a recent history of upheaval.

In September, a dozen or so America West Airlines pilots ended a drive that began a year earlier to replace the union. The America West Airlines Pilots Association said its push resulted in 45 percent of the company’s roughly 1,850 pilots signing cards to authorize a change of leadership. More than half of the pilots had to sign the cards to ask the National Mediation Board to investigate the dispute.

The pilots are represented by the Air Line Pilots Association, the biggest pilots union in the United States and Canada with 66,000 members. Those who advocated change said the national leadership had too many conflicts to lobby for them.

At the end of 2003, after fours years of negotiations and two failed votes, just 51 percent of company’s pilots approved a threeyear labor deal. Szmal took over in July, hoping to bring the fractured union back together.

Baker thanked Szmal for his hard work, saying, "We’re going to continue to move forward as a unified pilot group and remain focused on the task at hand, which is obviously the pending merger talk."

Baker, an America West chief pilot for more than four years, quit two years ago to go back to being a line pilot. The chief pilot’s job is to represent the pilots and management. "Believe me, it’s a fine fence to walk," he said, adding he’s no lackey. "If you talk to any of the pilots when I was chief pilot, I think you won’t find that to be true."

http://www.eastvalleytribune.com/index.php?sty=41030

http://www.halpilot.com/

[wizard]

http://www.airliners.net/open.file?id=8033...d=802156&size=L

[Dropzone]

Pilots ask union leader to resign

And the FUN begins.....

[Sky High]

The american version of ACPA/ALPA???