US Airways Pilots Question United Merger

The Association of Flight Attendants, the International Association of Machinists and the Teamsters have all raised objections in the past.
By Ted Reed ,

CHARLOTTE, N.C. -- Pilots at

US Airways

(LCC)

have become the latest labor group to raise doubts about a possible merger with

UAL

(UAUA)

and its United Airlines unit.

"Regarding United Airlines, their financial health is a major concern," Stephen Bradford, president of the US Airline Pilots Association, said Friday in a prepared statement. "With mounting losses and a dismal balance sheet, UAL may not be the best dance partner for US Airways."

Bradford urged US Airways management to address seniority integration and contract issues that persist following the 2005 merger with America West before moving on to a deal with United. Last month, USAPA replaced the Air Line Pilots Association as the union representative for US Airways' 4,300 active pilots.

The US Airways pilots' statement means that nearly every major labor group at the two carriers have criticized the merger, which the two airlines have discussed, according to sources with knowledge of the situation. That could raise problems in Congress, which holds hearings on airline mergers, even if it has no direct impact on whether regulators approve a transaction.

The Association of Flight Attendants, the International Association of Machinists and the Teamsters, which jointly represent tens of thousands of employees at the two carriers, have all raised objections.

The United chapter of ALPA, which represents about 6,500 active pilots, has been particularly critical and has blasted both airlines. United may have problems, but "US Airways' problems run even deeper

and we do not view a marriage with US Airways as anything remotely resembling a solution," United ALPA chapter chairman Steve Wallach said recently, in a prepared statement.

Shares of UAL were down 2.3%, while US Airways was up 4.3%. Merger partners

Delta

(DAL) - Get Report

and

Northwest

(NWA)

were both trading lower.

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