In news that could bode well for the future of cheap airplane tickets and cheap vacation packages, the ALPA (Air Line Pilots Association) has backed off of its support of the proposed merger between Continental and United. Negotiations with management over a transition agreement have stalled.
Continentals CEO has been singing the virtues of the upcoming merger, claiming labor would benefit from expected synergies and has promised to work with labor in good faith to complete new contracts for the merged airline. Now, after talks have broken down, pilot union officials are saying if these talks are an indication of managements approach, they have serious doubts as to how long it will take for any of managements touted synergies to be achieved.
In June pilot union officials expressed support for the merger during hearings on Capitol Hill. Pilot union leaders from both Continental and United implored lawmakers to approve this merger, stressing the combination would create an opportunity for success.
Even during their testimony in front of Congress, pilot union leaders acknowledged that their support for this merger was not unconditional, emphasizing that management needed to recognize the importance of its pilots and other labor groups and negotiate with them fairly.
Airline experts have expressed serious concern whether the rift between the pilots unions and management can be repaired. The importance of pilots support for an airline merger were very apparent last year when Southwest decided not to acquire Frontier because the two airlines pilots were unable to work out a transition plan that addressed seniority and other pilot issues.
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