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Aug29
Unions at United Airlines Talking Merger?
Are the unions at United Airlines parent company UAL Corp (UAUA) preparing for a merger?  The Denver Post reported several days ago that the airline's union have been preparing behind the scenes for the last few years for a potential airline merger.  The rumors have been flying lately about who United would merge with.   I've continued to say that United Airlines and Continental Airlines would make a very strong partnership.

"We've been preparing for a potential merger since late 2004," said Sara Nelson Dela Cruz, spokeswoman for the Association of Flight Attendants at United.

11 Continental Airlines at Orlando International Airport 77(Greg Caesar).jpgHer union is hopeful that a merger could bring more jobs or an opportunity to negotiate better pay and benefits.

"The industry is headed towards consolidation to expand," Dela Cruz said. "That is a sign of good things for the airline industry, and the employees who have sacrificed so hard to keep the industry afloat stand to benefit from profits or any industry turnaround."

The Air Line Pilots Association at United has a merger committee that meets regularly and has been preparing a review of issues pilots would face in a consolidation scenario.

"ALPA always has contingency plans for any possibility of action, whether it be a merger, financial challenges such as bankruptcy or any other possibility that may come down the line in an ever-changing industry," said pilots union spokesman Dave Kelly.

Airport Business

What do you think about the unions preparing for a merger?  Do they know something that we don't know?  Have they been told to start preparing for the process? 

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