US Airways Labor Pacts Could Hinder AMR Merger Effort
"We've had talks with airlines in the past," Parker said then. "This (provision) always comes up. (It) is a large issue in consolidation talks. There will not be a merger if that's where the pay rates go. Anybody we would merge with can't let the pay rates go to those levels.
"You can't have both," Parker added. "You can't have a merger with that provision. (It) will either result in a merger never being done or it will be a merger that doesn't trigger that provision."
Although former leaders of the U.S. Pilots Airline Association were often perceived as obstreperous, in the spring of 2010 they acted to work with the carrier to enable a merger with United, and Parker subsequently praised those efforts.
Parker has said that US Airways has a 10% revenue disadvantage to the Big Three airlines, which have hubs in cities with higher levels of local traffic, and that lower employee costs make up for the revenue disadvantage. A merger would enable better contracts at US Airways, he has said."The change of control provision provides US Airways pilots with a tremendous amount of leverage should a transaction occur," said USAPA spokesman James Ray. "In order for US Airways pilots to support a merger, it has to recognize the sacrifices that this pilot group made in two bankruptcies, which put us in the position we are today, where we can possibly make a deal that benefits employees and investors at both airlines." -- Written by Ted Reed in Charlotte >To contact the writer of this article, click here: Ted Reed >To follow the writer on Twitter, go to http://twitter.com/tedreednc.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV