A merger between United Airlines and US Airways would be a mistake said United”s division of pilots union Alpa.
Speculation of a deal has been rife since the breakdown of talks with Continental, and United MEC [division of Alpa] chairman Captain Steve Wallach said in a statement that this has created enormous concern.
”United pilots share the market”s view that a merger with US Airways would be extremely negative from United”s perspective,” he said. ”While United has its own problems and issues - mostly created by management”s single-minded focus since bankruptcy exit on consolidation as opposed to the basic ”blocking and tackling” required to run a successful airline - US Airways” problems run even deeper.”
The union says US Airways significantly trails other legacy carriers in generating cash flow from operations, and in 2007 it ranked ”at or near the bottom among all legacy carriers in every measurable category: on-time arrivals, mishandled bags and customer satisfaction.”
Both airlines posted large losses for the first quarter this year ” United $542m, US Airways $236m ” largely due to ballooning fuel bills, and consolidation is seen as one way of combating the problem. Delta and Northwest expect to save more than $1bn a year through fusing operations.
But the union is worried about the airlines” compatibility in practical terms.
”Much of this is a result of US Airways” inability to achieve operational integration despite the fact that more than two and a half years have elapsed since its merger with America West,” said Wallach. ”Continued difficulties associated with pilot seniority integration are well chronicled. Even those reports grossly underestimate the complexity of seniority integration, which likely will not be solved without years of litigation.
”US Airways” pilot integration problems have created a toxic stew, as any carrier that seeks to merge with it will quickly discover and one which in the current environment could imperil a United/US Airways combined enterprise.”
United should copy Continental and ”turn its attention inward” he said - it is the only carrier in the industry with no aircraft on order or optioned which is ”not a long-term plan for survival.”