While the Air Line Pilots Association has taken an unequivocal stance against the U.S. Justice Departmentâs attempt to block the merger of bankrupt American Airlines parent AMR and US Airways, at least one segment of the unionânamely the unit representing the pilots of Americanâs wholly owned regional subsidiaryâsees things a bit differently. In fact, American Eagleâs pilots might consider the departmentâs opposition to the merger something of a reprieve after US Airways management insisted on creating a so-called B Scale pay formula at Eagle in return for rights to the next batch of large regional jets the ânewâ American orders.
In an August 16 âNewsblastâ reporting to membership on the status of AMRâs reorganization plan and the lawsuitâs potential effect on its confirmation by the bankruptcy court, American Eagle Master Executive Council (MEC) chairman Tony Gutierrez complained of a failure of the merger agreement to include any accounting of his airlineâs interests.
âSeparately from the [Department of Justice] antitrust issue, the ALPA-represented pilots of American Eagle are very concerned that AMRâs current [plan of reorganization, POR] does not provide for a viable future for American Eagle,â said Gutierrez. âIn this regard, it is significant that a viable business plan for American Eagle was part of the original stand-alone business plan for the new American but that plan is conspicuously absent from the merger POR.â
Another official from the Eagle MEC stressed to AIN that the pilot groupâs leadership does not oppose a merger per se, only one âabsent a viable business plan for American Eagle that includes the acquisition of âlargeâ RJ aircraft.â Although he declined to comment on ALPA Internationalâs position, he acknowledged that it does not exactly âalignâ with that of the Eagle MEC. âI cannot comment on ALPAâs national position except to say that it is directed at the health of the airline industry overall, whereas the Eagle MECâs comments are specific to the health of our carrier,â he said.
For its part, ALPA International complains that the Justice Departmentâs suit has served to interfere with the airlinesâ progress in achieving a healthy competitive environment. âThe Justice Departmentâs move isnât rooted in the economic reality facing the aviation industry and workers, one of the most fiercely competitive industries in the global economy,â said ALPA in a statement. âMoreover, the [Department of Justice] appears to have completely overlooked the need for U.S. carriers, such as American and US Airways, to position themselves to compete in the international marketplace against powerfulâoften government supportedâforeign airlines.â
Not long after ALPA published its stance against the Justice Departmentâs move, union president Lee Moak cosigned with 12 regional airline chapter heads an August 13 letter to members supporting American Eagleâs position against US Airwaysâ effort to âwhipsaw,â or pit regional airline pilots against each other to gain leverage in negotiations for new fee-per-departure contracts. The Eagle MEC considers Moakâs support a victory, given ALPAâs fervent advocacy of the merger. Indeed, if any new merger agreement doesnât address the âwhipsawingâ tactics described in the letter, ALPA might need to rethink its position.