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January 25, 2008

Pilots Ready Themselves for Possible Mergers. Passengers Should, Too.

Filed under: Airlines, Pilots, Continental — Rick Seaney @ 1:20 pm

Airline merger mania continues as the potential of a Delta/Northwest deal grows. Other legacy carriers such as United Airlines and Continental airlines could also be involved, and while Continental has stated it would prefer to remain independent, pilots for the airline know that might not be an option.

In order to prepare themselves for a possible merger, the Continental pilots union has readied their Strategic Merger and Acquisition Response Team (”SMART”).

Keep reading to see how the pilots union can affect the merger process, and how these potential mergers can impact travelers…

“‘We will not stand idly by and allow a change in the airline landscape without taking steps to protect the interests of our pilots,’ Tom Donaldson, chairman of Continental’s pilots’ union said in a statement late Thursday.” (From Reuters)

Continental remains an intriguing partner for other major carriers, because they have established themselves as a sizable player in the international travel market. Continental’s international routes are well-established, and there is still room for growth.

The pilots union will continue to protect its own interests in light of all the merger talk, and airline employees across the board are continuing to fight for higher wages. However, employees and top brass alike know that in order to survive, the landscape of the industry will most likely have to change.

I’ve voiced my concerns over major carrier mergers in the past. They can all but eliminate competition in certain cities, and once that happens, passengers traveling to and from those cities can face increased airfares and far fewer options.

It would be wonderful if airline employees and passengers could escape these mergers without taking a financial hit, but generally speaking, that hasn’t been the case in the past. Joe Brancatelli of the Washington Post summed it up perfectly (as he usually does):

In the 30 years since deregulation, the surviving legacy carriers have endured dozens of mergers. Almost all were disasters, with the acquiring carrier eventually being driven off most of the routes it acquired. The mergers led to debilitating strikes, management putsches, greenmail, and failed employee buyouts. Iconic brands such as Pan Am, Eastern, TWA, and Braniff disappeared without a trace. All the surviving legacy carriers except American Airlines have been in bankruptcy, some more than once.

 

Liked this story? Check out “Airline Merger Mania: Adored by Airlines, Costly for Consumers”

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