6-Apr-2010 4:12 PM

Pilot contract threatens US Airways merger

US Airways CEO, Doug Parker stated plans to merge with another carrier may be blocked by a provision in its pilots contract (TheStreet, 05-Apr-2010). At a meeting held on 17-Mar-2010, Parker reflected on a contract provision requiring that if the airline has a change of control, pilot wages would "snap back" to a far higher level that was in place before the carrier extracted wage concessions in two bankruptcies in 2002 and 2004. Speculation continues over whether the carrier might merge with United Airlines, a Star alliance partner, or American Airlines.