US Airways Makes Move To Take Over American Airlines - NewsOn6.com - Tulsa, OK - News, Weather, Video and Sports - KOTV.com |

US Airways Makes Move To Take Over American Airlines

Posted: Updated:
US Airways. [AP] US Airways. [AP]
TULSA, Oklahoma -

US Airways has begun the process of a takeover of American Airlines.

The airline filed a Form 8-K with the Security and Exchanges Commission Friday morning stating it has signed agreements with American's three major unions to work with US Airways in support of a takeover of American.

US Airways CEO Doug Parker says Friday's announcement does not mean US Airways has agreed to merge with American, but rather it is working with American's unions "to make a merger a reality."

Bruce Hicks, American Airlines spokesman, said in a statement to News On 6 that American is currently working on its plan of reorganization.

"American Airlines is moving steadily through the Court supervised restructuring process and the Court has granted American the exclusive right to create its plan of reorganization at least until September 28, 2012. We are making substantial progress in our efforts to return American to industry leadership, profitability and growth and maximize its value for all of its stakeholders. Our immediate next step is to pursue vital modifications to our collective bargaining agreements through the 1113 process that begins on Monday, April 23rd. We believe statements of non-binding support from union leaders for alternative proposals are no coincidence given the timing of the 1113 process. These statements do not in any way alter the company's commitment to pursue our business plan or our focus on moving steadily through the court supervised restructuring process to create a profitable, growing industry leader. For American's outstanding employees and loyal customers, business continues on track, as we continue to provide the safe, reliable travel experience our customers expect." 

American Airlines' parent company AMR is currently in Chapter 11 bankruptcy.

 

CEO Doug Parker's letter to US Airways employees:

Today, we filed a statement (a form called an 8-K) with the Securities and Exchange Commission disclosing that we have signed agreements with the three unions that represent nearly 55,000 American Airlines employees. These unions are the Allied Pilots Association (APA), the Association of Professional Flight Attendants (APFA) and the Transport Workers Union (TWU), which represents all of American Airlines' mechanics and fleet service employees. Shortly after our disclosure, these three unions issued a public statement announcing their support of a US Airways-American Airlines merger and that they have agreed to terms that would govern collective bargaining agreements for their members at the merged airline. I want to explain to you why we have done this and what it means.

First of all, today's news does not mean we have agreed to merge with American Airlines. It only means we have reached agreements with these three unions on what their collective bargaining agreements would look like after a merger, and that they would like to work with us to make a merger a reality. To get to an actual merger, many more things must happen including gaining the support of AMR's creditors, its management team and its Board of Directors. But this is obviously an important first step along that path and we are hopeful we can all work together to make this happen.

All of you have heard me talk about the benefits consolidation has created for US Airways and our industry. You have also heard me say that US Airways does not need to merge with anyone, as evidenced by our team's outstanding results. That is still the case, but after studying American Airlines' current state and their future plans, we have concluded that a merger with American, while they are undergoing their bankruptcy restructuring, represents a unique opportunity that we should not ignore. These beliefs are shared by the three American labor unions and we are delighted to have their support. Like us, they recognize the potential of a merger to improve the current and future careers of both airlines' employees.

Combining American Airlines and US Airways would create a preeminent airline with the enhanced scale and breadth required to compete more effectively and profitably. Our intention would be to put our two complementary networks together, maintaining both airlines' existing hubs and aircraft, and create an airline that could compete successfully with United, Delta and other carriers within our industry. A merged airline would provide competitive, industry-standard compensation and benefits, as well as improved job security and advancement opportunities for all employees of the combined airline. Most importantly, in American's standalone strategy, over 13,000 employees at American will lose their jobs. Our merger contemplates saving at least 6,200 of these positions. For the US Airways team, the agreements we have reached with the unions representing employees at American would also provide enhancements to the compensation and benefits currently in place here.

Today is one step in what will be a much longer process. For now, it remains business as usual. We must continue to provide the outstanding service that customers have come to expect from US Airways.

In the meantime, if you have any questions, please stay connected via Wings and we will continue to provide updates on our progress. Thanks for all that you continue to do to take care of our customers. Together, whether a merger is our future or not, we will continue to run a great airline and have a bright future ahead of us.

According to the SEC, Form 8-K is a report companies file with the SEC to announce major events that must be disclosed to shareholders.

Bruce Hicks, American Airlines spokesperson released the following statement:

"American Airlines is moving steadily through the Court supervised restructuring process and the Court has granted American the exclusive right to create its plan of reorganization at least until September 28, 2012.

We are making substantial progress in our efforts to return American to industry leadership, profitability and growth and maximize its value for all of its stakeholders. Our immediate next step is to pursue vital modifications to our collective bargaining agreements through the 1113 process that begins on Monday, April 23rd.

We believe statements of non-binding support from union leaders for alternative proposals are no coincidence given the timing of the 1113 process. These statements do not in any way alter the company's commitment to pursue our business plan or our focus on moving steadily through the court supervised restructuring process to create a profitable, growing industry leader.

For American's outstanding employees and loyal customers, business continues on track, as we continue to provide the safe, reliable travel experience our customers expect."   

A joint statement issued Friday by The Transport Workers Union (TWU), the Association of Professional Flight Attendants (APFA) and the Allied Pilots Association (APA):

"On behalf of nearly 55,000 American Airlines front-line employees--including the 17,000 members of the Association of Professional Flight Attendants, the 10,000 members of the Allied Pilots Association and the 26,000 members of the Transport Workers Union--we are pleased to confirm our support of a possible merger between our airline and US Airways. We have reached agreements on terms sheets for collective bargaining agreements that would govern the American Airlines employees of the merged airline with US Airways.

"This significant step represents our shared recognition that a merger between American Airlines and US Airways is the best strategy and fastest option to complete the restructuring of American Airlines, enabling it to exit the Chapter 11 bankruptcy process and restore American Airlines to a preeminent position in the airline industry.

"As envisioned, a merger of US Airways and American Airlines provides the best path for all constituencies, including employees of both American Airlines and US Airways. The contemplated merger would be based on growth, preserve at least 6,200 American Airlines jobs that would be furloughed under the company's standalone strategy, and provide employees of both American and US Airways with competitive, industry-standard compensation and benefits. Over the long term, the combined new airline would support greater job security and advancement opportunities for both American Airlines' and US Airways' employees that are far superior to those available to employees at either airline on a stand-alone basis. Importantly, by avoiding a lengthy and contentious 1113 process, the new carrier would be able to emerge from bankruptcy more quickly.

A merger would create a foundation to establish American Airlines as a vigorous competitor of the two larger network carriers and the industry at large. Customers of both airlines and air travelers in general will benefit greatly from a viable third network carrier and significantly enhanced travel choices."

4/19/2012 Related Story: American Airlines' Unions Support Possible Takeover By US Airways

Keep checking here for new developments in this story, and News On 6 viewers can watch reporter Lacy Lowry's report on News On 6 at 5 p.m. and 6 p.m.

Special Features

Community Calendar

Find out what's going on around town and submit events!

Share

See it! Shoot it! Send it! Share your weather pics and videos with NewsOn6.com!

iPhone App

Get breaking news, weather, sports & video directly on your iPhone.

Mobile Alerts

Get breaking news, headlines, weather alerts & more on your cell phone.

TV Schedule

Need to know what's on TV? Check out our television schedule.

Live Radar

WARN Interactive

Special Coverage

  • Bridge Tracker

    How safe are Oklahoma's bridges? Use Bridge Tracker to find out now.

  • Cold Case

    Join Lori and local homicide detectives as they search for Cold Case clues.

  • Fallen Heroes

    News On 6 honors our fallen Oklahoma heroes. View our interactive timeline.

  • Murrah Bombing Timeline

    Learn more about the events leading up to and following the bombing.

  • Storm Zone

    Watch tornadoes tear across Oklahoma and learn how to stay safe!

  • Turnpike Timelines

    View a historical road map of Oklahoma's turnpike system.

Powered by WorldNow
News On 6
303 N. Boston Ave.
Tulsa, OK 74103
TULSA'S OWN TM
GREEN COUNTRY'S OWN TM
Oklahoma's Own Newson6.com is proud to provide Oklahomans with timely and relevant news and information, sharing the stories, pictures and loves of Oklahomans across our great state including Tulsa's Own and Green Country's Own.
All content © Copyright 2000 - 2014, WorldNow and KOTV. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.