Tag Archives: merger

Breaking: Three American Airlines Unions Sign Term Sheets with US Airways

US Air A330.jpg

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:





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.  

United Airlines BOD Approves Deal With Continental Airlines

As expected, news reports this afternoon say that the board of directors of United Airlines has okayed a merger with Continental Airlines. The Continental BOD is expected to meet later today and do the same.

The expected merger is valued at more than $3 billion and the formal announcement is expected Monday.

For now, my lips are sealed. I’m in the middle of writing another 100 page earnings issue of PlaneBusiness Banter. But I will say this — I hope the folks at Continental did their homework.

Goodbye Houston, hello Chicago.

Hot Off the Rumor Mill: US Airways Set To Make Formal Offer for United Airlines

For what it’s worth, we’ve been hit by a number of emails in the last hour concerning a possible announcement regarding a move by US Airways on United Airlines.

While this would certainly be big news, for those of you who follow the industry (and hopefully by reading PlaneBusiness Banter), you shouldn’t be surprised.

Yee haw. I hope these rumors are spot on. I’m tired of reading emails about diaper bags and charging for carryons.

British Airways and Qantas Crank Up the Merger Machine


It seems that we have news of a merger a minute these days — but nothing U.S. based. Yet.

This morning, hot on the heels of the news that Ryanair was once again mounting a hostile attempt to take over the 70% of Aer Lingus it does not currently control (a move which, not surprisingly the Aer Lingus management team quickly denounced) today we have news of an attempt at a true blockbuster link-up.

British Airways and Qantas are apparently in discussions to do the dastardly deed.

According to Bloomberg,

“The airlines are discussing a combination after the Australian government said today in a policy paper that it might ax a rule barring individual foreign holdings of more than 25 percent and total foreign airline holdings of more than 35 percent. Still, there are no plans to abandon the so-called “Qantas Sale Act” that says the carrier must remain 51 percent locally owned.

‘Any transaction would also comply fully with Qantas’s Sale Act and Australia’s international Air Services Agreements,’ Qantas said separately.

Negotiations on a merger are “advanced,” the Australian Financial Review said earlier. British Airways, Europe’s third-biggest carrier after Air France-KLM group and Deutsche Lufthansa, said it issued today’s statement in response to “media speculation.”

A merger of the two airlines would create an entity with annual sales of about $23 billion.

What a coincidence.AMR, parent of American Airlines also generates about $23 million in annual revenue.

And yes, you’d have to a blind person not to see why it is that the American Airlines-British Airways anti-trust piece of the pie is so important to this oneworld concept of world domination.

According to various reports out this morning, both airlines would retain their own brands. Sounds like another Air France/KLM type of set-up that is being proposed.

Justice Department Okays Delta/Northwest Deal


The Department of Justice issued its Good Housekeeping Seal of Approval this afternoon for the proposed Delta/Northwest merger. Yawn.

I don’t think anyone really thought this okay was in doubt — although obviously because Delta cancelled their Media Day that was originally scheduled for tomorrow, I guess it came just a tad later than had been expected.

On with DelWest. Or would that be Norta?

Speaking of Norta….or DelWest there was a laundry list circulated earlier this week of some of the execs at Delta who are going to stay with the new entity.

And a bit of HR news from out of the two airlines’ current sphere of influence.

Ned Walker, who has headed up the PR and Communications function at Continental for a very long time — has moved to Norta. Or DelWest. Yes, Yes, Ned, I know. It’s going to be Delta. I’m just yankin’ you guys’ chain over there.

If you have ever questioned the power of relationships — when it comes to business — look at this move. If I am not mistaken Ned and Delta CEO Richard Anderson were both at Continental (back there in the dark ages) together.