This Day On The Street
Continue to site
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

Exclusive: American, US Airways in Pilot Talks to Set Up Merger

CHARLOTTE, N.C. ( TheStreet) -- Key parties from US Airways (LCC) and American Airlines are negotiating a memorandum of understanding for a pilot contract, which could pave the way for a merger.

"We are negotiating," said Tom Hoban, spokesman for the Allied Pilots Association, which represents American Airlines pilots. "Everybody is at the bargaining table (in Dallas).

"The goal of the four-party talks is to reach a interim agreement between both pilot groups and their respective management teams," he said. "Without that interim agreement, there is chance that a consensual merger while inside bankruptcy would be in jeopardy."

The document would establish the terms for an interim pilots contract if there is a merger, which is expected by some analysts. It has not been reviewed by either airline or union board, but negotiating teams for the four parties are nearing an agreement.

In a Tuesday afternoon e-mail to members of the US Airline Pilots Association, which represents US Airways pilots, President Gary Hummel wrote: "Last week your union entered into discussions in Dallas regarding a potential merger between AMR and US Airways."

Hummel's letter overstated the extent of progress on reaching a deal and has been withdrawn, but a source said a memoradum of understanding with USAPA is close.

Hummel said a memorandum of understanding, when it is reached, will be reviewed by pilot leadership to determine whether to endorse it. He said US Airways CEO Doug Parker and President Scott Kirby, as well as the creditors' lead counsel, Jack Butler, will address the USAPA board in Charlotte on Wednesday.

A merger would create the world's largest airline with major hubs in Charlotte, Chicago, Dallas, Philadelphia and Phoenix and a strong presence in Los Angeles, New York and Washington.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
AAPL $118.32 -0.47%
FB $105.47 -0.26%
GOOG $748.36 0.01%
TSLA $226.60 3.80%


Chart of I:DJI
DOW 17,831.90 +19.71 0.11%
S&P 500 2,090.67 +1.53 0.07%
NASDAQ 5,113.7430 +10.9350 0.21%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs