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Wed, Nov 13, 2013

AFPA Welcomes Announcement That AA, US Airways Merger Is On

Union Represents Over 16,000 Flight Attendants At American Airlines

The Association of Professional Flight Attendants, which represents 16,000 flight attendants at American Airlines, cheered the announcement Tuesday that the Justice Department has accepted a settlement in its antitrust suit against American Airlines and US Airways.

The union said the announcement is the culmination of well over a year of hard work. APFA recognized the value of the merger plan and executed a creative strategy to bring the deal to fruition. From the halls of Congress to the board rooms of Wall Street, American’s flight attendants convinced every major stakeholder that their airline needed a merger partner in order to compete with the remaining legacy carriers Delta and United. This is the first time a merger has been completed in bankruptcy and the association says it could not have occurred without the support of organized labor and the strong advocacy of the APFA.

“This is fantastic news not only for all the employees of the new American, but for consumers and the industry,” said APFA President Laura Glading. “I want to thank our flight attendants for stepping up and making the case for this merger. Clearly, our voices were heard at the Justice Department. There is strength in unity.”

After striking labor agreements with US Airways management, APFA used its position on the Unsecured Creditors’ Committee of American’s ongoing bankruptcy trial to advocate for the merger plan. When the Justice Department sued to block the merger in August, APFA members traveled to Capitol Hill to rally support for the deal. APFA President Laura Glading was put on the witness list to testify in support of the merger before Congress.

APFA says the turning point of the deal came when APFA forced American into sharing proprietary financial information with US Airways. APFA was the last to hold out on a labor agreement with American following Section 1113 proceedings. American, needing a contract with its flight attendants to establish its cost structure, had no choice but to entertain the merged option when APFA refused to give in.

FMI: www.apfa.org

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