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US Airways Pilots Question United Merger

CHARLOTTE, N.C. -- Pilots at US AirwaysLCC have become the latest labor group to raise doubts about a possible merger with UALUAUA and its United Airlines unit.

"Regarding United Airlines, their financial health is a major concern," Stephen Bradford, president of the US Airline Pilots Association, said Friday in a prepared statement. "With mounting losses and a dismal balance sheet, UAL may not be the best dance partner for US Airways."

Bradford urged US Airways management to address seniority integration and contract issues that persist following the 2005 merger with America West before moving on to a deal with United. Last month, USAPA replaced the Air Line Pilots Association as the union representative for US Airways' 4,300 active pilots.


US Airways CEO Parker Pulls It All Together

CHARLOTTE, N.C. -- For the fourth time in four years, Doug Parker is actively chasing his dream of a game-changing airline merger.

If there were to be a deal between US Airways, the company he runs, and UAL's United, Parker would become an icon, a CEO who merged his way to the top of the industry.

Four years ago, Parker was running America West Airlines, a Tempe, Ariz.-based regional carrier with $2.4 billion in annual revenue. Today, he heads the $12 billion US Airways. A successful merger could make him a top executive at a $30 billion airline, second in size only to Delta and Northwest, assuming their own combination is completed.

United's board is scheduled to meet today to review options that also include entering into an alliance with Continental, although a source with knowledge of the situation said no decision is imminent.


Airline shares climb on positive economic news

By Christopher Hinton,

NEW YORK (MarketWatch) -- Airline shares gained ground Wednesday following new reports that the U.S. economy may not contract as much as originally thought.

The Amex Airline Index rose 2.6% to end at 22.8 points with all but two of its 14 components trading higher.

In this morning's Wall Street Journal, the newspaper reported a shrinking number of economists think the U.S. is approaching a recession, and cite improvements in the stock and credit markets.

Leading the way were the network carriers, hardest hit by investor concern of a economic slowdown and high fuel. American Airlines parent AMR Corp. rose 5.4% to $9.11, Continental Airlines Inc. added 4.3% to $18.38; and U.S. Airways US Airways Group Inc. climbed 3.9% to close at $7.25.


US Airways Pilots Replace Their Union


April 18, 2008

Pilots at US Airways ousted their union, the Air Line Pilots Association, on Thursday, replacing it with an insurgent group, a move that raised further questions about the carrier's ability to combine operations after its 2005 merger with America West Airlines.

The vote was closely watched because the issue that caused the schism at US Airways - how to merge two pilot seniority lists, which determine pay, schedules and type of plane flown - has emerged as a significant impediment to a smooth merger of Delta Air Lines and Northwest Airlines.

And any potential follow-on merger, like one between United Airlines and Continental Airlines, would involve combining seniority lists.


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