Debate Over American Airlines & US Air Merger Escalates
DALLAS (CBSDFW.COM) - When American Airlines heads to court on Monday, Dallas County Judge Clay Jenkins will head to DFW International Airport to join with protesting employees. "If they were to do away with the labor contracts of their 55,000 employees currently under contract, that would have an effect on thousands of people here in North Texas," he said.
In New York, attorneys for the airline will argue that it tried to negotiate with the union, but now needs to toss out their contracts to cut costs and survive.
The company's current plan would mean losing as many as 14,000 jobs.
The unions, meanwhile, are lining up behind a proposed merger with US Airways, which has said it could save almost half the jobs in jeopardy. "I would assume the unions are going to argue that here is a viable alternative plan, as opposed to what American proposed, which we don't agree with," said Dallas attorney Randy Ray.
"They're desperate because they're fighting for their lives and their careers," said Denny Kelly, an aviation expert. Kelly was a captain for Braniff International Airlines, when it went bankrupt back in 1982 and dissolved overnight. "We had people with the company who committed suicide, we had a lot of people who pulled their kids out of college because they couldn't afford to send them."
In a seniority-based industry, Kelly said, it doesn't matter if you're a veteran pilot or seasoned flight attendant, starting over at a new airline means starting from scratch. "Starting salary, starting working conditions, vacations, all that kind of thing," Kelly said.
A merger may present hope for worried employees, but it's a long way from becoming reality.
For now, the focus will be on how to save American Airlines. The bankruptcy judge has given the company until September 28 to get its own plan together. Before that date, US Airways, or any other interested buyers, will not be able to step in and make a bid.
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