This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

United, Continental Pilots Want Better Contracts

Stocks in this article: CAL UAUA DAL

HOUSTON TheStreet) -- Pilot leaders at Continental (CAL) and United (UAUA) say they are receptive to a merger between the two airlines, but they expect contract improvements to accompany it.

"We have been negotiating a new contract for three years," said Jay Pierce, chairman of the Continental chapter of the Air Line Pilots Association, in an interview. "We look at this as a vehicle to rectify that situation. "

United and Continental said Monday that they plan to merge to create the world's largest airline, which will be based in Chicago and see its largest hub in Houston.

Continental and United

Continental has offered its pilots a contract resembling the deal reached by Delta (DAL) pilots immediately following the 2008 merger with Northwest. "That's a good template, a good place to start," Pierce said, noting that Delta pilots received $700 million in salary increases and $500 million in equity.

However, he said that for half of Continental's pilots, the Delta contract represents a pay cut. Widebody pilots would get a raise to Delta levels, but 737 pilots would take a pay cut.

Wendy Morse, chairman of the United ALPA chapter, also called the Delta contract "a good place to start" during a conference call with reporters on Monday. It is not surprising that her view resembles Pierce's. The two have talked several times a day since merger talks between the carriers began around April 9th.

Asked whether she is happy about the merger, Morse responded: "Time will tell whether we're happy or not. This is a wonderful opportunity for the airline to move forward and not backwards. But it won't move forward without us."

She stressed that the Delta process, in which negotiating a pilot contract was an important early step, provides a good model to effect a merger. It definitely benefits United pilots, who have been working under a contract negotiated during the carrier's three-year bankruptcy.

Still, Morse -- like Pierce -- does not see the Delta contract as the best possible outcome. In particular, she noted that Continental pilots have stronger protections against outsourcing flying to smaller airlines, which fly smaller airplanes under the mainline carrier's name. While the Continental contract prevents the airline from using regional aircraft with more than 50 seats, while the United limit is 70 seats.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs