By Rajesh Kumar Singh
CHICAGO, May 4 (Reuters) – The head of American Airlines’ pilots union told members that United Airlines CEO Scott Kirby’s merger idea showed the kind of “bold vision” the carrier needs, even as the union stopped short of endorsing a tie-up between the two airlines.
In an email to pilots on Monday, seen by Reuters, Allied Pilots Association President Nick Silva said Kirby’s vision could be “transformative” for passengers, communities and American Airlines pilots.
Silva’s message shows how Kirby’s rejected proposal has become a new pressure point inside American. APA is not backing a merger, but its president is using the idea to argue that American needs a more ambitious strategy and stronger leadership to close the gap with rivals.
“(Kirby) articulated a bold vision for the future of air travel that could be transformative for our passengers, the communities we serve, and, foremost, the very people at American that our C-suite has chosen to disrespect: you,” Silva wrote.
American did not immediately respond to a request for comment on the matter.
United said last month it had ended its pursuit of a merger with American after the rival carrier declined to engage following an initial approach. American has said a merger with United would be bad for competition and for consumers.
UNION PRESSURE
For years, American has lagged Delta Air Lines and United on profitability. Its unions have turned that gap into a governance issue, pressing the carrier’s board of directors for accountability at the top.
In February, APA urged American’s board to take “decisive action” and requested a meeting with the full board. The airline’s flight attendants union also issued a no-confidence vote in Chief Executive Robert Isom and demanded leadership change.
Public calls by labor groups for leadership change are unusual outside formal contract talks. American’s unions have linked the airline’s performance to strategy and execution.
Silva encouraged American pilots to read Kirby’s message, saying the United chief had laid out why he believed a merger could be transformative for both airlines and withstand regulatory scrutiny.
While Kirby’s vision may remain only an “aspiration” for now, Silva argued its ambition highlighted how far American had fallen behind domestic and international competitors.
Silva said APA’s message has focused on management’s lack of a long-term strategy, the “unacceptable” state of the airline, and the union’s openness to “any path forward” that would allow pilots to work at an airline that values them and “not only competes but leads the industry.”
“It’s clear that it will take bold ideas and real leadership to restore American to a true place of prominence among global airlines,” he wrote.
MERGER HURDLES
Kirby raised the idea of a tie-up with American during a late-February meeting with Trump that had been scheduled to discuss the future of Washington’s Dulles airport, sources told Reuters last month.
The idea came amid an escalating rivalry between the carriers, including in Chicago, but faced steep antitrust hurdles because of their overlap in major markets. Trump has also said he does not support a merger between the two carriers.
Silva said he hoped all strategic alternatives that could move American forward would receive full reviews from senior management rather than a “quick defensive dismissal.”
In his email, Silva also suggested APA was being approached by people interested in alternatives for American’s future. He said American management had recently asked whether anyone was trying to “get APA pilots on board with an alternative plan” for the airline.
“That answer is ‘Yes,'” Silva wrote.
He did not identify who was behind those efforts or whether they were connected to United.
(Reporting by Rajesh Kumar Singh; Editing by Edmund Klamann and Stephen Coates)
Comments