UAL, CAL pilots warn carriers on any merger

WASHINGTON (Reuters) - United Airlines (UAUA.O) and Continental Airlines (CAL.N) would have to satisfy demands of pilots if they plan a merger, leaders of the carriers' respective pilot unions said on Tuesday.

The Continental and United chapters of the Air Line Pilots Association (ALPA) issued a statement citing industry speculation that United and Continental could be next to unveil a merger now that Delta Air Lines Inc (DAL.N) has proposed buying Northwest Airlines Corp NWA.N in a stock deal worth more than $3 billion when it was announced Monday night.

"The management teams of United and Continental must understand one hard fact," the union leaders said. "The pilots of our respective airlines will not allow any merger unless management meets or exceeds our demands to be treated fairly and equitably."

Pilots want to be "fully involved" in any merger plan and said they have repeatedly asked United and Continental to acknowledge their concerns before proposing any transaction.

Commercial airline pilots are wary of cost-saving scenarios in merger proposals that would cut their pay and benefits and disrupt their flying schedules.

Pilots at Delta and Northwest scuttled the companies' initial plans to propose a merger last month because the unions could not agree on a seniority formula for working together.

Delta eventually won the support of its pilots, who would get an equity stake, if the deal goes through. Northwest pilots are opposed to the merger on grounds it does not serve their interests.

Delta pilots were instrumental in helping the company fend off a hostile bid last year from US Airways Group Inc (LCC.N).

(Reporting by John Crawley; editing by Tim Dobbyn)