Exclusive: American, US Airways in Pilot Talks to Set Up 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 Hummel's letter overstated the extent of progress on reaching a deal and has been withdrawn, but a source said a memoradum of understanding with USAPA is close.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. Follow @tedreednc -- Written by Ted Reed in Charlotte, N.C. >To contact the writer of this article, click here: Ted Reed
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV