Airlines Acknowledge Pilots' Unions Framework For Pilot Integration Should A Merger Occur

American Airlines and US Airways, with the participation of committee counsel for the Unsecured Creditors Committee, said Friday that they have completed discussions with the Allied Pilots Association and US Airline Pilots Association intended to develop a framework for the terms of employment for pilots, as well as a process for pilot integration, in the event of a merger between AA and US during restructuring.

This memorandum of understanding was approved by the Allied Pilots Association's Board of Directors and by USAPA's Board of Pilot Representatives. This memorandum of understanding will assist all of the stakeholders, including the Boards of AMR and US Airways, in making an informed decision as to whether a merger should ultimately be pursued. The MOU is one of several elements to be considered before a decision on a merger can be made. Details regarding the MOU are still covered by the terms of a non-disclosure agreement so they cannot be further disclosed at this time. 

The MOU was approved by both pilots' unions late last week. The US Airways Pilots Association tweeted that its board's voted was unanimous. The board of the Allied Pilots Association, which represents American pilots, approved the MOU by an 11-5 vote.

The next meeting of the AMR board is January 9th. A full merger plan is not expected to be presented at that time. American management has held throughout the bankruptcy proceedings that it hopes to emerge from Chapter 11 as a stand-alone airline.

FMI: www.american.com, www.usairways.com