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Fri April 20, 2012
AA Unions Endorse US Airways Merger
The three largest American Airlines unions are supporting a merger with U.S. Airways.
Dallas aviation attorney Kent Krause says the union support for a merger comes before Monday’s bankruptcy court hearing. That’s when American will ask the judge to void all labor contracts.
Krause doesn’t expect the unions’ merger support will sway the judge.
Krause: I think that the judge will look past that. But I think that was probably the purpose of the unions doing that was to try to create a little leverage against the airline and try to convince them to not take such a harsh tactic with them.
Krause says there is recent bankruptcy court precedence for scrapping union contracts.
The Allied Pilots Association says the union accomplished more in a week of contract talks with US Airways executives than in five years of negotiating with American. Some pilots say a merger is a superior alternative to American’s stand alone plan.