Skip to content

CAL-UAL Merger

I had a First Officer the other week who was age 29, engaged to wed, a serious recently-subdued southern conservative, who had an older brother pilot at Continental Airlines. So he already knew everything, with a firm immutable mental model, having completed his learning phase of life.

In discussing some travel pass particulars that effect my personal situation now and post UAL-CAL merger, he made the statement that the U.S. Department of Justice would not approve the airline merger until the two pilot unions had reached a seniority integration agreement. “They don’t want to end up with another mess like they have over at US Airways.”

It sounded like arithmetic hokum to me, which I tried to convey to no avail. But then, I’m merely an elderly small-jet captain.

So I’m reading the WSJ today and come across this article about US Airways’ business success.

And the relevant quote is:

The cost picture could change once a years-long legal dispute is resolved over seniority of the old US Airway and former America West pilots. Once the pilots decide among themselves how to combine ranks, US Airways will have to negotiate with them as a single group, which is expected to boost its costs.

Basically, US Airways maintains that it is totally comfortable following the “divide and conquer” method with the two pilot groups. It’s helping to keep their costs down and their stock price up. – Keep the hornet’s nest mixed up however it’s possible!

It’s working so well that I can imagine CAL-UAL management trying to execute something similar. And I can’t imagine the DOJ interposing labor relation requirements in an anti-trust determination. Particularly when market and competitive success has been shown as assured.

And that FO? Well he still has marital, child-rearing, and financial issues to come that he hasn’t even dreamed about.

Post a Comment

Your email is never published nor shared. Required fields are marked *
*
*