Pilot agreement makes US airline merger ‘more probable’
American Airlines and US Airways have signed a ‘pilot’s agreement’ in preparation of a merger between the two airlines.
The carriers said they had completed discussions with the Allied Pilots Association and the US Airlines Pilots Association in the event of a merger, which looks at the terms of employment for pilots as well as the process for pilot integration.
The "memorandum of understanding" was created by all parties and will "assist all of the stakeholders, including the Boards of AMR and US Airways, in making an informed decision as to whether a merger should ultimately be pursued."
The statement said that the MOU was only one of several elements to be considered before a decision would be made on the mega-merger.
The agreement reinforces the reality of the deal making it more probable, which many industry analysts say would raise fares throughout the industry and create more crowded flights.
By Gretchen Kelly and Diane Evans
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