Having gone through several mergers in my career I can tell you a few rules. It is of no value for one side to talk directly with the other side (in a non mediated environment.) Basically, what you are trying to do is convince the opposition that they are WRONG and you are right. When that does not work (and it never does
insults fling, verbal taunts abound and the proverbial downward slide goes on with everyone loosing.
There are a few methods of mergers that I have seen over my multitude of years and let me simply pass them on to you and explain the potential problems.
1. Career Expectations. Airline A has a pilot seniority that can expect upgrades faster than Airline B, therefore airline A should have an equal percentage of pilots “on top” of airline B. It can be upgrade expectations, reserve to schedule expectations, small to medium to heavy jet upgrade. Domestic to International expectations etc. This thinking places a pilot RATIO based upon these criteria and SLOTS pilots seniority accordingly.
2. Equipment Size. This usually comes into play when there are two types of events. One airline has larger equipment than the other airline and there is a difference in work rules, pay, and trips etc. on the different equipment. This thinking then puts a scaled value on the equipment and determines a RATIO used to ratio pilot’s seniority as well.
3. Airline Size. This is a ratio using one or a combination of things to determine the size of an airline. Airline A buys airline B; however, airline A has 500 pilots and airline B has 1000 pilots. Or airline A has 100 aircraft and airline B has 50 aircraft. Or airline A has 100 million annual RPMs and airline B has 200 million annual RPMs. This thinking then states to “SLOT” pilots based on some or all of this data.
4. Cut and Paste. My definition today but in the past it was called “Staple.” Simply put one pilot group is placed at the bottom of the seniority list of the other group. Usually this is the purchasing company on top and the purchased on the bottom. Surviving named companies have also been heard from. You know airline A buys airline B and calls the new airline, airline A (or B). Some members have suggested this method and I have heard all the arguments (nothing new here.) This thinking is usually racist, superior minded, selfish and unacceptable to most human thinking. YES, I have seen it occur (even in a merger I was involved in) however, all those points above are still valid. History, when viewed from the outside, always comes to the same opinion.
5. DOH (DOJ). Date of hire or using the originator “Allegheny Mohawk Merger Provisions” tends to be the most favored and fair of systems. Yes it can appear to give special treatment to the stagnant airline and punish the dynamic airline; however, with respect to pilot’s seniority it has little to do with management decisions. The older pilots usually are the more senior pilots and therefore, in this situation, leave the company sooner for the junior/younger pilot. By this method the junior pilot will NATURALLY progress.
Now of all these major methods above there is one important thing people must remember. MERGERS HAVE CAUSED AIRLINES TO GO INTO BANKRUPCY AND EVEN CEASE TO EXIST!
The US Air - Piedmont merger was so vicious that 15 years AFTER the two airlines were put together (17 years after US Air bought Piedmont) the pilots were still fighting. There was NEVER a cohesive pilot force after that and the “Civil Was” as the pilots called it was still raging. There was the “Northern Division” (US Air pilots) and the “Southern Division” (Piedmont Pilots) and the company could never achieve positive results that they should have. Contract negotiations were never easier for management since the civil war was more important the both sides pay stub.
The Republic – Northwest merger still today (after 20 years) has the green book, red book contracts. Pilots flying side by side work under different rules, pay etc. Not a nice situation if you are a Captain making less than the First Officer sitting next to you.
American – TWA wound up putting TWA right out of business and having the pilots hope for the best. Most got the worst and 30 years Captains started sitting right seat for 10 year Captains. American has yet to realize 1 dime worth of benefits from the merger.
These are but a few of the problems you may know of but here are a few you may have forgotten.
United – Capitol (Capitol had the big aircraft DC-8s while United had small aircraft and Capitol guys got screwed.)
United – Pan Am Pacific. (United did not fly to the Orient but Pan Am guys got screwed.)
Pan Am – National (National had domestic routes; Pan did not, but National Screwed.)
Delta – Northeast (Northeast screwed.)
Piedmont – Empire (Piedmont had no routes in Northeast USA, but Empire got stapled.)
British Airways – B. Cal (B-Cal screwed.)
United – Frontier (Frontier guys put out of business)
Southwest – Tran star (Tran star guys put out of business)
And who can forget Frank Lorenzo's Texas International and Continental (everyone screwed.)
There are tons more I have seen in my career. Only a few have been successful, due to the hard work of pilots and management. Successes!
Hughes Air West (now Republic/Northwest) and Bonanza.
Allegheny (now US Airways) - Mohawk
Allegheny (now US Airways) - Lake Central
US Airways – PSA
American – Air Cal
Alaska – Jet America
Delta – Pan Am Europe
So guys remember one thing. You make a merger work, and then in a few years it will be irrelevant. Your company will take off, everyone will want to come there and work and guys will all move up. Screw your fellow pilot, and then 20 years from now it will still be hell to work there. Resentments are rarely forgotten! Remember, no matter how “FAIR” you think your opinion is, how fair does your fellow pilot feel it is?
Good luck and I guess I will just keep my last few years here and not go over to your guys.
Burners and out!