Stock Under $10 with 50-100% upside potential - 14 Days FREE!

Flight Attendants Take Lead in Backing US Airways/AMR Merger

Stock quotes in this article: AAMRQ.PK, DAL, LCC, UAL 

CHARLOTTE, N.C. (TheStreet) -- Flight attendant unions at American Airlines (AAMRQ.PK) and US Airways (AAMRQ.PK) are taking the lead in advocating for a merger of the two carriers.

"We all think American needs to merge," said Laura Glading, president of the Association of Professional Flight Attendants, which represents American flight attendants, in an interview. "We think American is going to be in jeopardy if it manages to emerge (from bankruptcy) as a standalone."

The APFA and the Association of Flight Attendants, which represents the US Airways flight attendants, recently issued a joint statement in support of the merger.

"Both unions firmly believe that an American Airlines/US Airways merger is in the best interest of the flight attendants at both carriers and are committed to working to further the goal of that merger," the statement said.

On Wednesday, US Airways flight attendant leaders reiterated that belief in a letter to members. They noted that a recently re-negotiated contract agreement, which remains to be ratified, is "the cornerstone of our strategy, (providing) industry-leading scope protections and contract improvements, to ensure we enter the merger from a position of strength." Said Glading: "Their membership is as excited as ours about the prospects for a merger, so we are working together."

American's other unions continue to support a merger, but somewhat less intensely. The Transportation Workers union has focused on preserving its options, in case a merger cannot be completed.

"We have tried to explore every option that would save jobs at American Airlines and keep the airline competitive," TWU President James Little has said. "We think the AMR board of directors should do the same."

On a conference call with reporters Thursday, Keith Wilson, president of the Allied Pilots Association, said "size does matter (and) a consolidated airline coming out of bankruptcy will be much stronger and much more highly competitive with the two carriers, United (UAL) and Delta (DAL), flying international routes."

However, Wilson said the pilots have not taken as definitive a stand as the flight attendants. Unlike AFA and TWU, the APA has yet to reach agreement on a contract with American, which would be in place were the carrier to emerge from bankruptcy without a merger.

"We're still open to exploring all options," Wilson said. APA vice president Anthony Chapman noted, however, that the tentative contract agreement with US Airways "is still more value rich" than a tentative contract agreement with American, which was rejected by pilots.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
TRY IT FREE

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
Dividend Stock Advisor
TRY IT FREE
New! $49.95/yr

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
Stocks Under $10
TRY IT FREE

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
Real Money
TRY IT FREE

24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.

Product Features:
  • Jim Cramer + 20 Wall Street pros
  • Intraday commentary & news
  • Real-time trading forum
  • Actionable trade ideas
Real Money Pro
TRY IT FREE

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 + 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
TRY IT FREE

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.
DOW 15,335.28 -19.12 -0.12%
NASDAQ 3,496.43 -2.54 -0.07%
S&P 500 1,666.29 -1.18 -0.07%
US 10 Yr 1.972% +0.007

Brokerage Partners

Advertising Partners
Special Features

Free Newsletters from TheStreet

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy. Manage Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs