A new year, a new merger. And with mergers comes seniority issues. Yes, that’s right, they’re back. They never go away, do they? So, before I continue, allow me to explain seniority. Airline Pilot seniority is determined by: number of years flown for the airline & rank / aircraft type. Currently, Delta and Northwest pilots are trying to work out a rank structure for the future combined airline. Note, that this stage is critical to any airline merger; disagreements between the pilots can tear a merger apart.
Historical Cases:
Perhaps the best model for a near-torn apart merger is US Airways and America West Airlines. The two merged in late 2005, yet failed to combine pilot contracts. The west coast, America West pilots, have a higher salary and have been promoted more frequently. Meanwhile, on the east coast, old US Airways east pilots are left with lower salaries and fewer promotions. The east pilots would like to have a pay increase and force the west to give up some of theirs, while the west is a little too greedy and doesn’t want to give up their pay. Subsequently, US Airways east pilots (the old US Airways) are not able to fly the west’s routes, and the America West pilots are not able to fly the east’s routes. Simply put, the merger that was ‘completed’ in 2005, is not complete. This problem could’ve been solved by the executives at the airline, but they care too much about making everyone happy.
The next story is about the TWA and American Airlines merger. In this story, American Airlines bought out TWA’s assets in mid 2001. Since American bought the company, this gave American the rights to all of the TWA pilots, including seniority. Now, note that this story has different circumstances (since American bought TWA), but to cut the story short, American gave all of TWA’s pilots low seniority, and a pilot that had worked for TWA for years (that flew the same equipment), had the same rank and pay level as a new-hire pilot on American. Does that sound right to you? For starters, it cuts costs for American, but to me is not morally right.
Basically, those are my two stories about seniority. It’s an important issue, and I’ll be keeping a close eye on the Northwest Airlines and Delta Air Lines pilots negotiations. This is an imperative stage to the merger, and if there are disagreements, it may fall though.
Two guys A and B interview for a pilot position at company X a start up, pilot A gets the job the other pilot B does not. He interviews for Y airline. Pilot A at company X has one day more of seniority than pilot B at company Y. Company Y is a good company with high salaries, flies international routes with big jets while company X is a start up with a rich owner and deep pock. Company X hits some ruff times and money is tight Company Y steps in and buys company X.
Now company XY has too many pilots and have to let one go. Since pilot B was on the payroll at company Y first he stays even tough pilot A has one day more seniority. Is it right or wrong no it is business? If there was an easier way surely it would have been tried before. When a pilot signs up with a company he can only pray he makes it to an early retirement with out the company folding on him.
Most guys interview with many carriers before getting pick up by one. Some of use had a choice. Some choose wisely some other not. However in the ninth inning it is too late to cry foul, those are the breaks. We as pilots know that it takes a miracle to get hired by a great company, stay there you whole career and retire with a pension, bye the way I have 11 more years and my knees hurt.
Capt Damon Powell
A*A
Thanks for an insider’s perspective Capt Powell. You are right on. It’s hard to stay in one place for 30 to 40 years in an industry that is always evolving and changing.
Best of Luck,
JH