US Airways pilots approve merger-related agreement

Jim Watson/AFP/Getty Images
DALLAS US Airways (LCC) pilots have overwhelmingly approved an agreement that would result in pay raises if their company merges with American Airlines.
Union president Gary Hummel said Friday that the agreement would give pilots $1.6 billion in considerations over six years.
American close to merger with U.S. Airways
American parent AMR Corp. and US Airways are in advanced negotiations on a merger with an announcement possible early next week, according to people familiar with the private talks.
The US Airline Pilots Association said 75 percent of its members favored the "memorandum of agreement" that details how they would be treated if a merger takes place. The Allied Pilots Association, or APA, at American had already approved a similar agreement.
Hummel said ratification of the memorandum insures that US Airways pilots -- who are paid less than those at American -- "will arrive at the merger as equal partners with APA in pay, benefits and working conditions."
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The deal provides for US Airways pilots to be paid the same as American Airlines pilots and to get an increase in retirement contributions. A captain of an Airbus A330 jet, for example, could see top-scale pay nearly double, to about $300,000 in 2018. First officers, or co-pilots, earn less.
For the most part, pilots from each airline would continue to fly that carrier's current planes and planes on order after the merger.
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- Well, US-Airways is known in our family for a very bad and lousy customer service, high prices and high rebooking fees, no goodwill at all and there has never been a real improvement all over the years. However, they do have a very big network in the east coast and after a merger there could be a monopoly with higher prices for the daily customers and less service in this part of the country. I think that this is an important issue for us daily customers. Less competitors in a certain region can lead quickly to higher prices and even lead to a monopoly in a region.
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- Well, How exactly do you expect USAirway or American to compete with the United/Continental group or the Delta/ NorthWest group oh let's not forget SouthWest/ AirTran? I have news for you Size matters. Airline operate on a 3 percent margin! It cost more to take a train or drive a car cross country than to fly. If you don't like USAirway fly someone else, you have many choices. USAirway is setting records almost every month for passengers carried. So it has to be doing something's right. Don't believe it look at their fourth quarter results. As far as a monopoly do some home work before you post, there's almost 0 overlap in the USAirways/American route system.













