Transportation Industry

Company Watch - US Airways

AirGuide Business, April 21, 2008

Apr 21, 2008

Pilots at US Airways have voted to leave the Air Line Pilots Association (ALPA) and form a separate union, ALPA said on Thursday. The pilots, who previously flew for the former US Airways and America West, which merged in 2005, left ALPA after some pilots became frustrated with the progress of post-merger discussions. Of the 5,238 eligible pilot voters, 2,723 voted to form the US Airline Pilots Association and 2,254 voted to remain in ALPA. The new union must negotiate a new contract representing both pilot groups and merging seniority lists. Seniority determines what planes and routes pilots fly and their path for moving up the ranks. The issue is one of the biggest difficulties in merging two airlines. Delta Air Lines and Northwest Airlines this week announced plans to create the world's largest airline. An earlier attempt by Delta and Northwest to reach a merger deal was disrupted by the failure of the two carriers' unionized pilots to reach a deal on seniority. Delta Air and Northwest say they have reached a deal with Delta pilots that gives them the cost savings they need to proceed with a merger without a pilot integration deal and without the full support of the pilots. Delta pilots support the merger proposal, while Northwest pilots oppose it. Apr 18, 2008

US Airways CEO Doug Parker said mergers would be good for airline employees, customers, and communities served by carriers. He did not refute reports that the airline has discussed a merger with United Airlines, and he has repeatedly said that US Airways will remain active in the merger front. Executives at Continental Airlines and United Airlines also said they will consider merging with other airlines. Meanwhile, American Airlines CEO Gerard Arpey said his carrier will remain competitive even if it does not merge with another airline. Apr 17, 2008

US Airways on Friday said it has reached a code share deal with Swiss International Air Lines. The code share, which allows travelers to transfer between the two carriers on certain routes, will be available for travel to 10 European destinations. Tickets for the code shared routes go on sale April 19 for travel from April 28. Apr 18, 2008

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