Roadblock for US Air

Pilots at Delta Air Lines have stipulations in their contract that would prevent a merger with US airways from taking place, the chairman of the pilots union said Wednesday.

The labor pact, which has been approved by the bankruptcy court, “is a controlling agreement in this merger, and it has several provisions that prevent [US] Airways from merging with Delta,” said Lee Moak, in an interview.

The contract sets a minimum for block hours flown by Delta pilots, strictly controls the use of regional jets and gives Delta pilots a say over code-share agreements.

Last month, US Airways mounted an $8 billion hostile takeover bid for Delta. The acquisition offer came barely a year after a 2005 merger in which America West Airlines took over the former US Airways and assumed its name. Delta sought bankruptcy protection in September last year.

Moak spoke by phone from Crystal City, Va., site of the one-time headquarters of the former US Airways. That facility has since been shut down, idling several hundred workers.

“This is the definition of synergies,” he said. “We will keep your name but close down your facilities, terminate, furlough and use attrition to get rid of your employees, and somehow that’s best for the airline industry.” He said several thousand Delta employees, including some pilots, would lose their jobs in a merger with US Scairways…….. Written by the street.com

Written by admin on December 7th, 2006 with no comments.
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