If Mergers Happen, They Want A Seat At The Table, Too
Amid rumors of possible airline
mergers, airline unions are taking steps to ensure their interests
are protected in the increasingly likely event a merger takes
place. Though all parties involved remain silent, it's increasingly
evident Delta Air Lines Inc. has formally initiated merger talks
with Northwest Airlines Corp. and United Airlines parent UAL Corp,
reports The Detroit News.
At Northwest, pilots and flight attendants say they would
support a combination with another carrier if employees get an
ownership share in the new company. Gary Rizzuto, pilots’
union spokesman for Northwest, said they activated their merger
committee late last year as merger rumors began to circulate.
As ANN previously reported,
merger rumors were heightened last November as investment group
Pardus Capital Management pushed publicly for such talks, citing
rising fuel costs and competition. Pardus owns significant shares
of both Delta and United.
Northwest’s pilot leaders say they could support such a
merger, depending on the identity of the other airline and labor
terms of the deal. Airline employees fear that consolidation could
result in fewer jobs and loss of seniority, which is especially
important for pilots’ work schedules and pay scales.
Northwest’s flight attendants have said they will demand
job protection and more pay, as well as part ownership of any new
company that results from a merger. These actions have led to
flurry of similar activity among other unions this week.
Continental Airlines pilots decided to activate their merger
task force last Thursday, so they would not be caught off guard.
Tom Donaldson, head of the Airline Pilots Association at
Continental, said Friday the pilots would be happy if the
Houston-based airline remains as-is, but they want a seat at the
table if Continental gets caught up in merger mania.
"We want to be a significant player in any negotiations for a
merger," Donaldson said.
Pilots sent a letter to Continental Chairman and CEO Larry
Kellner regarding the union’s position, he said. Continental
had no comment Friday on the move by the pilots union.
Robert Roach of the International Association of Machinists and
Aerospace Workers said that all airline workers need to be
protected in the event of a merger.
"We believe that mergers would have an adverse impact on the
flying public, which would affect our members," Roach said. "The
employees at all these carriers have taken significant wage and
benefits cuts."

Analysts have said that the labor unions could use consolidation
to recover some of the wage and benefit concessions they gave from
2001 to 2005 as carriers suffered huge losses. Aviation consultant
Mike Boyd thinks much of the merger activity is being promoted on
Wall Street by companies looking to make money off such a deal.
Kevin Mitchell of the Business Travel Coalition agrees, saying a
traditional merger would only be a short-term fix... resulting in
bigger airlines with the same big problems.
"In this case, it is a small handful of Wall Street types and
investor types that are driving this," he said. "It is all about
getting the stock price up, get hundreds of millions in fees, then
they walk away."