Here we go.
Just minutes ago, a joint statement was issued by the three unions that represent more than 55,000 American Airlines’ employees. Concurrent with that, US Airways issued an 8-K with the SEC.
The situation we have is this: All three unions have signed term sheet agreements with US Airways, and have now publicly thrown their support behind a merger between US Airways and American Airlines.
See below for the union statement:
ALLIED PILOTS ASSOCIATION, ASSOCIATION OF PROFESSIONAL
FLIGHT ATTENDANTS AND TRANSPORT WORKERS UNION JOIN IN
SUPPORT OF AMERICAN AIRLINES-US AIRWAYS MERGER
Union Leaders Pursue Best Path to Restore American Airlines to Preeminence
Fort Worth, Texas (April 20, 2012) — The Transport Workers Union (TWU), the
Association of Professional Flight Attendants (APFA) and the Allied Pilots Association
(APA) issued the following joint statement today:
“On behalf of nearly 55,000 American Airlines front-line employees—including
the 17,000 members of the Association of Professional Flight Attendants, the 10,000
members of the Allied Pilots Association and the 26,000 members of the Transport
Workers Union—we are pleased to confirm our support of a possible merger between our
airline and US Airways. We have reached agreements on terms sheets for collective
bargaining agreements that would govern the American Airlines employees of the
merged airline with US Airways.
“This significant step represents our shared recognition that a merger between
American Airlines and US Airways is the best strategy and fastest option to complete the
restructuring of American Airlines, enabling it to exit the Chapter 11 bankruptcy process
and restore American Airlines to a preeminent position in the airline industry.
“As envisioned, a merger of US Airways and American Airlines provides the best
path for all constituencies, including employees of both American Airlines and US
Airways. The contemplated merger would be based on growth, preserve at least 6,200
American Airlines jobs that would be furloughed under the company’s standalone
strategy, and provide employees of both American and US Airways with competitive,
industry-standard compensation and benefits. Over the long term, the combined new
airline would support greater job security and advancement opportunities for both
American Airlines’ and US Airways’ employees that are far superior to those available to
employees at either airline on a stand-alone basis. Importantly, by avoiding a lengthy and
contentious 1113 process, the new carrier would be able to emerge from bankruptcy more
“A merger would create a foundation to establish American Airlines as a vigorous
competitor of the two larger network carriers and the industry at large. Customers of both
airlines and air travelers in general will benefit greatly from a viable third network carrier
and significantly enhanced travel choices.”
That is the full text of the unions’ joint statement.