Mergers are common in the airline business.
In 2013, US Airways decided to merge with American Airlines. A more recent development has been the announcement made by American Airlines plans to reduce the pilot base by 500 starting next year. According to the Arizona Republic, a third of its pilots will be cut due to the merge.
This article discusses what this merge means for the pilots and the company.
What does this mean for the Phoenix based Pilots?
Due to the merger, pilots based in Phoenix are at the mercy of American Airlines staff
Pilots who have higher seniority within the company will have opportunities for advancement whilst others will need to seek other employment.
American Airlines spokeswoman Leslie Mayo states:
“The Phoenix pilots haven’t been able to move out of their base for 11 years and with this they’ll have the opportunity to upgrade to captain to a larger airplane, both of which come with more money. And they’ll have the opportunity to transfer bases and perhaps move where they live instead of commute.”
Most of the Phoenix based pilots have been restricted to certain routes since 2005.
Instead of losing their jobs, Phoenix pilots will commute to other bases for work. The merger now gives them the chance to relocate to another base that is more convenient to them.
What are some pitfalls of this merge?
The merge is not without its setbacks. For instance, the US-Airways downtown headquarters is one of the main losses of the merge. This results in a loss of a multitude of high paying jobs in that area.
Additionally, the Phoenix passenger counts are decreasing dramatically. Based on Arizona Republic, the “passenger counts fall 5.6 percent in July from a year earlier and 8.2 percent in August”. This means that there is a slight shortage of passengers in the Phoenix area due to the merge.
Conclusion and Plans for the Airlines
In Conclusion, the merger between US Airways and American Airlines creates opportunities for its pilots and the company. By 2017, American Airlines plans to hire over 750 more pilots causing more jobs and opportunities within the company.