United Air Lines pilots against merger with US Airways

By Lisa Kerner

Charlotte, N.C., April 29 - The United Chapter of the Air Line Pilots Association said United Air Lines Inc. pilots believe, as does the market, that a merger of the company with US Airways Group, Inc. would be "extremely negative."

On Tuesday, the association issued a statement in response to speculation that United is in final merger talks with US Airways.

The association acknowledged United's problems - blaming them on management's focus on consolidation - but said US Airways' problems "run even deeper," citing the company's poor cash flow and low-ranking operational performance.

US Airways has failed to successfully integrate operations following its merger with American West more than two years ago, the association said.

From the pilots' perspective, the company's problems with pilot seniority integration will likely not be solved without years of litigation.

"US Airways' pilot integration problems have created a toxic stew, as any carrier that seeks to merge with it will quickly discover and one which in the current environment could imperil a United/US Airways combined enterprise," the association said in its statement.

Glenn Tilton, chairman, president and chief executive officer of United parent company UAL Corp., commented on consolidation in the airline industry in a statement released on Monday.

"We will pursue all options to ensure a strong, sustainable future for our airline and will not shy away from the tough choices necessary to create value for our shareholders and benefit our employees and customers," Tilton added.

Chicago-based United operates more than 3,200 flights a day and employee 55,000 people worldwide.

It was previously reported that Continental Airlines, Inc.'s board and management rejected a merger following a review of strategic alternatives first announced on April 15.

The risks of a merger outweigh potential rewards, the company said in a letter to its employees in reaction to news that Delta Air Lines, Inc. and Northwest Airlines Corp. agreed to merge.

ExpressJet Holdings, Inc., a Houston-based regional airline operating under the name Continental Express, recently rejected SkyWest, Inc.'s unsolicited proposal to acquire the company for $3.50 per share in cash, a prior news release said.

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