A Peek Into the Dark Side of Mergers

Negotiations between the merged US Airways and its two pilot unions trying to become one gives us a little glimpse at the dark side of mergers. Specifically the difficulties surrounding the effort needed to combine two unions into one big happy family. The new US Airways has been at this for months. The old America West pilots get paid more than the old US Airways pilots. America West pilots don't want to take a pay cut, US Airways pilots want a raise. The airline doesn't want to do anything that will increase costs. Everybody stand in a triangle and smack the person to your right. There, feel better?

There's a flaw I see in the union's position illustrated in this quote from Tania Bziukiewicz, a union spokeswoman and US Airways pilot:

"To force our pilots into a pay cut is ridiculous, especially at a time when we're making money," said Tania Bziukiewicz, a union spokeswoman and US Airways pilot."

"At a time when we are making money"? Bziukiewicz refers, of course, to the $305 million profit that the new US Airways posted last quarter. Good grief, one quarter is like 12 seconds in the life of an airline and $305 million dollars, unfortunately, is not a lot of money for an airline. I've posted about this before but it merits repeating, its too early to ask for raises. If it money you want then you need offer up concessions on work rules and benefits to offset it. I do not believe that there is room for any airline, Southwest included, to let costs increase at this time. The continued recovery of the airline industry requires a tight rein on costs.