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Wed, Sep 29, 2010

Unions Cast A Wary Eye Towards SWA, AirTran Merger Proposal

Teamsters To Airlines: 'We'll Be Watching', SWAPA Says It Is Focused On Its Pilots' Careers

The Teamsters Union said Monday that it is assembling an experienced team of experts to ensure its members' jobs and interests are protected should the proposed merger of Southwest Airlines and AirTran Airways be approved by federal regulators and shareholders.

"Our most important responsibility is to ensure that the proposed merger addresses the concerns of our membership," said Teamsters Airline Division Director David Bourne. "Our team of legal and financial experts has extensive experience with mergers and acquisitions and will watch this process carefully so that the interests of our mechanics, flight simulators and stock clerks members are protected."

The Teamsters represent 430 mechanics and related workers at AirTran and 22 flight simulators and 165 stock clerks at Southwest.

Meanwhile, Southwest Airlines Pilots' Association (SWAPA) says it will continue preparations for an intense period of change for both the Company and the Union. As part of this airline acquisition, SWAPA says its primary interests will be to negotiate a transition agreement with Southwest Airlines and to incorporate pilots from the AirTran seniority list onto the Southwest Airlines seniority list.

"We are cautiously optimistic of the potential fleet growth opportunity connected to this acquisition and its subsequent effect on our pilots' career progression," said Capt. Carl Kuwitzky, SWAPA President. "As we work on our portion of this acquisition, no stone will be left unturned to protect SWAPA pilots' interests."

SWAPA says it has retained an investment banking firm to provide counsel and expertise to value the transaction, identify synergies created by the transaction and advise during bargaining efforts. The Association also has retained a legal firm it believes is experienced in all facets of law relating to mergers, acquisitions and seniority list integration.

"SWAPA has forged a working relationship with the AirTran MEC leadership and today we contacted them and will be meeting soon," continued Capt. Kuwitzky. "We will be working with the AirTran group and both sides have many challenges ahead. SWAPA will work to make this transition as smooth as possible for our pilot group."

FMI: www.teamster.org, www.swapa.org

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