United Airlines Pilots Express Strong Concerns Over the Proposed Merger of United and USAirways



United Airlines Pilots Express Strong Concerns
Over the Proposed Merger of United and US Airways

May 24, 2000, ROSEMONT, IL – The United Airlines Master Executive Council (UAL-MEC), a unit of the Air Line Pilots Association, International (ALPA), issued a statement today expressing strong concerns over the proposed merger of United and US Airways and the impact of the proposed merger on the United pilot group. Captain Rick Dubinsky, Chairman of the UAL-MEC, said: "The proposed acquisition of US Airways is the perhaps most important strategic action this Company has undertaken over the past twenty years. If implemented, the acquisition will shape our airline for years to come. I am deeply disappointed that the Company would enter into a transaction of this magnitude without reaching full agreement with the United pilot group on all issues."

The proposed merger could require a difficult and potentially disruptive negotiation between the pilot groups at United and US Airways over the integration of the US Airways pilots into the United pilot seniority list. In addition, United and the UAL-MEC have made little progress in negotiations over a new pilot labor contract to replace the agreement that became amendable on April 12, 2000. "Before today, the Company and the UAL-MEC faced the enormous challenge of reaching a satisfactory pilot contract that rewards our pilots for the sacrifices we have made to return United to profitability. The proposed merger will make that task even more difficult by requiring the integration of two very different pilot groups into a single airline," Captain Dubinsky explained.

"While a combination of United and US Airways may offer many economic benefits, nothing is more important to this airline right now than resolving the growing friction between management and its pilots. Jim Goodwin and the United senior management team have pledged to get down to business to negotiate an industry-leading pilot contract and to protect the interests of the United pilots in any US Airways transaction. We intend to hold the Company to that commitment over the next few weeks," Captain Dubinsky added. The UAL-MEC will hold a special meeting next week in Chicago, Illinois to review the issues created by the US Airways transaction with legal and financial advisors to the pilot group and United’s senior management team. The UAL-MEC represents approximately 10,000 United pilots. The United pilot groups own approximately 25 percent of the stock of UAL. United has been employee-owned since July 12, 1994 and a majority of UAL stock is held by its employees.

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