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December 11, 2012

Former AMR CEO Crandall: pilot seniority agreement is key for American-US Airways merger

Former AMR chief executive Bob Crandall talked with Bloomberg TV on Tuesday about the possibility of a merger between American Airlines and US Airways, calling it "doable."

In response to a question about whether or not the pilots should support a merger, Crandall said, "It's hard to say. I think that depends on what the pilots decide to do. The key issue the pilots have to agree on a seniority integration scheme. The two sides at US Airways, the two airlines that came together, those pilots have still not agreed on seniority integration. You can't successfully do a merger unless that's done."

And when the moderator asked Crandall why airline mergers are so difficult to accomplish, he replied, "It's not so much engineering them, it's bringing together everything...the IT is different, the culture is different, the processes are different. So they're very hard to do. Continental-United for example is still struggling with it. I think it's doable and I think there is some appeal to a combination between American and US Airways which would be bigger and would reach many more cities. But it needs that pilot integration cooperation."

Check out the full video clip here.

-Andrea Ahles

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Comments

casual observer

Hence, there will be no merger until US sorts itself out. AA pilots would be moronic to walk into that hornets nest, especially with some tender feelings still surfacing from the TWA/AA merger.

Wings367

I agree. A successful partnership only happens when both sides are stable and have their own houses in order. AA has their act together, now it's US Air's turn. Unfortunately, it doesn't look like Doug Parker can get his own pilots to cooperate. What confidence do we have in him to bring over more groups to the table and play nice.

JR

The seniority battles will be historic. To Nic or not to Nic....

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