US Airways Group Inc. said it reached agreements on contract terms for major unions at American Airlines ahead of a possible merger offer for the AMR Corp. unit.
US Airways didn’t disclose any details for how it would proceed with a “business combination” with American, which has said it wants to exit bankruptcy protection as a stand-alone airline. The labor accords are contingent on reaching a deal with AMR, US Airways said in a regulatory filing.
Terms disclosed in documents provided to the unions said a combined carrier would keep the American name and headquarters in Dallas-Fort Worth. American’s union leaders have thrown their support behind the possible merger, saying that’s the best chance to grow and preserve jobs at the airline.
“Our airline’s future is far brighter with this transaction and the US Airways team,” the Association of Professional Flight Attendants said in a statement e-mailed to members.
US Airways said it reached agreements with the flight attendants, Allied Pilots Association and the Transport Workers Union, which represent about 48,000 active employees at Fort Worth, Texas-based American.
US Airways, based in Tempe, Arizona, rose 1.3 percent to $9.63 at 9:37 a.m. in New York, heading toward a fifth straight daily advance.
American will go before U.S. Bankruptcy Court in New York on April 23 as it seeks permission to throw out existing contracts and impose new terms that will cut 13,000 union jobs and reduce labor spending by $1.25 billion a year.
(Source: Bloomberg)
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When AA acquired TWA out of bankruptcy, they also acquired their outstanding obligations. The TLV based twa union has a judgment against TWA for their pensions. this is why AA never flew to TLV even though it is a profitable route. If an AA plane lands in TLV it will be repossessed to pay the outstanding TWA judgement.
If this merger goes through expect that the first thing you will hear is the cancellation of all US TLV flights!