The Association of Flight Attendants-CWA in a statement released Tuesday night said flight attendants at both companies are disgruntled following years of wage givebacks and bankruptcy filings. The union urged the airlines "to first address the problems that have created this adversarial labor environment before contemplating any kind of consolidation scenario," warning that if not, "flight attendant issues will become real and significant obstacles in the path of any merger."
The comments echo similar statements made by pilots at United late last month. Steve Wallach, chairman of the United chapter of the Air Line Pilots Association, in a statement warned that labor issues inside US Airways has created "a toxic stew" that would poison any deal. Meanwhile the International Association of Machinists and Aerospace Workers, which represents employees at both companies, have vowed to fight airline deals. Union president Tom Buffenbarger in testimony to Congress April 24 said he believes airline managers are using the current economic downturn in the industry to attempt to create a monopoly. "If there were only two airlines left in the country, I am convinced their CEOs would be complaining about overcapacity and looking to merge," Buffenbarger said.
While the labor disharmony surely complicates matters, it is unlikely on its own to derail a deal. Officials with the two airlines according to sources continue to discuss a potential transaction. And while many details remain unresolved, both management teams have expressed a desire to use consolidation to bring down capacity and help restore profitability in an industry rocked by soaring fuel prices. But the union rhetoric, if nothing else, serves as a pointed reminder of the challenge the airlines would face if they do go forward with a deal. - Lou Whiteman
See the full statement from the flight attendants
See TheDeal.com story on United pilot opposition to a US Air deal
See IAM president Buffenbarger's full testimony
Flight attendants from United Airlines Inc. and US Airways Group Inc. have joined the chorus of labor opposition to a rumored combination of the two airlines, urging managements to get their own houses in order before considering dealmaking.
