Pilots at Continental Airlines Inc. added their voice to the rhetoric surrounding consolidation on Friday, warning that they must have a say in any deal involving the Houston-based airline. Continental's chapter of the Air Line Pilots Association International in a
statement said they have activated the union's strategic merger and acquisition response team center in response to rumors concerning potential dealmaking. Though Continental is not involved in ongoing
talks between Delta Air Lines Inc. and suitors UAL Corp. and Northwest Airlines Inc., industry sources say whichever airline does not join forces with Delta could seek a deal with Continental.
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Tom Donaldson, chairman of the Continental pilots union, in a statement said his group "will not stand idly by and allow a change in the airline landscape without taking steps to protect the interests of our pilots." He said the union "must be key in the decision to welcome or reject any merger candidate."
Continental management has said previously it prefers to remain independent, and in fact reportedly turned down overtures from Delta earlier this month even as both Northwest and UAL, parent of United Airlines, agreed to talks. However, management might be forced to reconsider its plan to go it alone given the expected size and scale a Delta merger would create.
The move by Continental's pilots mirrors steps taken by their peers at Northwest, who have laid out what might be asked of management in order to win union approval of a deal. The Northwest chapter of ALPA put out a resolution last week saying they would support a deal that gives them a share of the equity in the combined carrier, a sweetened contract, a "fair and equitable" integration of seniority lists and reason to believe the combined company would be big enough to sustain profits. - Lou Whiteman
See Continental pilots statement
See TheDeal.com story on Delta's negotiations
See Dealscape post on demands from Northwest pilots
