Building trades head urges US Airways' CEO to delay American Airlines merger bid
'Open letter' says Greater Pitt Airport losses offer cautionary tale
PITTSBURGH, June 27, 2012 /PRNewswire/ -- The head of the Pittsburgh Building and Construction Trades Council today issued an "open letter" to Douglas Parker, CEO of US Airways, urging postponement of any attempt to merge with American Airlines until American emerges from bankruptcy court protection at the end of September.
"At this point in time, there is no reason to rush American Airlines into a merger that may not be necessary to its potential recovery," wrote Building Trades head Richard Stanizzo. "Additionally, a merger could decrease the combined carrier's services in some communities."
He urged the delay, saying "it would be imprudent to force a merger without first considering and then fully disclosing its potential consequences."
Stanizzo said the Pittsburgh experience resulting from the merger of US Air with America West in 2005 was devastating to the local economy – thousands of jobs lost at the airport alone, which had been a major US Airways hub before the merger. The loss of hub traffic and related maintenance and ground services cost the airport "hundreds of millions of dollars in revenues," Stanizzo wrote.
Stanizzo said, "I worry that another merger would have a similar effect not only on Pittsburgh but also on other mid-sized cities across the country.
The labor leader asserted that the federal law gives American "the right to complete this (bankruptcy) process without any undue influence from outside groups." He cautioned that "any meddling will serve to undermine the process and jeopardize American's ability to do what it sees fit to return to profitability."
SOURCE Pittsburgh Building and Construction Trades CouncilBack to top