Jan 15 If American Airlines and US Airways Group
merge, pilots of the carriers would initially be
governed by the contract currently in place with American's
pilots, according to terms of a memorandum disclosed on Tuesday.
The so-called memorandum of understanding has been approved
by the leadership of the Allied Pilots Association, which
represents American's pilots, and the US Airline Pilots
Association, the union for US Airways pilots, as well as by the
American parent AMR Corp, which filed for
bankruptcy in November 2011, is weighing merging with US Airways
against exiting Chapter 11 as a stand-alone company. A combined
carrier's revenues would be on a par with the revenues of United
Continental Holdings, which became the world's largest
airline in 2010.
In a statement, American Airlines stressed that the memo of
understanding would only become effective should a merger be
approved, and added it outlines the process to reach a joint
collective bargaining agreement for pilots.
The memorandum of understanding "was negotiated to give the
parties greater clarity on both the costs and the pilot
integration processes associated with a potential merger, as
American reviews its strategic alternatives," spokesman Bruce
In a message to members, the Allied Pilots Association said
its 2012 collective bargaining agreement reached with American
would be the "baseline contract for all pilots" should a merger
The MOU would allow the pilots union to make $522 million in
contractual improvements, or $87 million a year over six years,
the APA said.
Additionally, the memo includes procedures for integrating
pilot seniority lists and specifies that current American pilots
would fly existing American aircraft, while US Airways pilots
would fly that carrier's planes.
"We recognize the prospect for substantial improvements this
potential merger holds for both pilot groups, APA President
Keith Wilson and US Airline Pilots Association President Gary
Hummel said in a joint statement.