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May 16, 2008 - 3:26PM
Updated: May 17, 2008 - 12:37AM
US Airways pilots union criticizes possible United merger
The Associated Press
If Tempe-based US Airways and United Airlines decide to merge, they’ll bring along a number of reluctant employee groups that would rather remain separate.
US Airways pilots on Friday joined a chorus of criticism about a possible tie-up. The US Airline Pilots Association said United parent UAL Corp. is financially weak, and that mixing the carriers is a bad idea. Chicago-based UAL lost $537 million in the first quarter.
“With mounting losses, and a dismal balance sheet, UAL may not be the best dance partner for US Airways,” USAPA President Stephen Bradford said in a statement.
United pilots are equally resistant to pairing with US Airways Group. Steve Wallach, a union leader for United pilots, has said that US Airways gives poor customer service and its previous deal with America West created a “toxic stew” within its pilot ranks.
Flight attendants, mechanics and fleet service workers at both carriers also have come out against plans for a combined operation.
Airline chiefs Doug Parker of US Airways and Glenn Tilton of United Airlines have both praised airline consolidation in general as the best way to deal with soaring fuel prices.
By joining forces, airlines can cut redundant routes, increase demand for the remaining seats, and keep fares high.
But the International Association of Machinists and Aerospace Workers is lobbying for a different strategy.
Spokesman Joseph Tiberi said consolidation won’t put an end to the high fuel prices that squeezed profit out of the industry.
Instead, the machinists union has called for a return of airline regulation.
For example, Tiberi said, the government should limit carriers from starting price wars with heavily discounted fares.
“This is an industry where the free market has obviously failed,” he said. “An airline can’t pay $100 to deliver a product to a customer, and then sell it for $75 and expect to make any kind of profit. It doesn’t make sense.”
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