My letter addressed to Attorney General Holder and Attorneys General to: Arizona Pennsylvania District of Columbia Texas Florida Virginia I write to you in regard to your lawsuit filed in the Department of Justice, seeking to block the merger between my employer (US Airways Group) and American Airlines (AMR Corporation). I echo the sentiment expressed to all of you by our various labor unions, and my fellow colleagues who adamantly oppose your position. Your filing comes at a time that is most perplexing, and poses many questions in regard to the logic and possible motivations behind your decision. Why Is a Merger Good For Us? While I understand your concern that a merger between our two families would cause air fare prices to rise skyward, I disagree with your assumptions. On the contrary, a merger between our two companies would offer more destinations to consumers, therefore boosting our economy by increasing competition, creating jobs, improving labor conditions, and bolstering labor relations between employees, our unions, and respective companies. Another benefit of our union would be the potential for air fares to fluctuate with demand from consumers and to match the current economic market. Our leadership at US Airways and American Airlines is well aware that intentionally raising air fares would be counterproductive. A merger between US Airways and American Airlines to create the new American Airlines allows our nation the opportunity to create a World Class air carrier to represent our nation, and rival competitors such as Singapore Airlines, Emirates, and Lufthansa Airlines. All of these national airlines provide an impeccable service to their customers. However, the difference is that these airlines benefit from governmental subsidies, enabling these firms to procure and maintain revolutionary aircraft that offer efficiency, comfort, and a five star experience by providing the finest materials for their cabin crews. For the past year, employees at both US Airways and American Airlines have anticipated joining our two families together in hopes of being a part of something great. Morale has increased tremendously among our colleagues, who look forward to joining forces. I too, am encouraged and believe that the American public and the world will benefit from a newly combined US Airways and American Airlines. With the youngest and most efficient fleet of aircraft, we will be able to provide a wide range of services for our customers, a healthy boost to our economy, and of course there is the potential to drive fares down to an affordable rate. Is that not what we want? – To attract consumers with competitive air fares? Airline Deregulation Act of 1978 In 1978, the Airline Deregulation Act (ADA) was enacted to remove government control over fares, reduction of services, and the exclusion of competition. It has provided the pathway for airlines to regulate competition among themselves, and allow market entry for new ventures. The ADA exposes consumers to the market force of the industry, while protecting them from unreasonable inflation of air fares. Airlines are able to run efficiently without interference from government. The ADA of 1978 also ensures that airlines are granted immunity from antitrust suits and the possible stifling of competition. State of the Airline Industry – Rising Costs The industry is ever evolving, and I remind you that there are several contributing factors such as the variable and continually rising costs of Jet-A fuel which currently stands at a national average of $5.52 per gallon. Fuel costs are the largest contributor to rising fares that can make or break an airline. For decades, apart from the global aviation industry, the aviation industry in the United States has suffered tremendously as a result of national tragedy, and economic instability. Airline employees throughout the industry voluntarily and involuntarily endured wage reductions. In an effort to revive the industry in the last decade, airlines such as United and Continental Airlines, Delta and Northwest Airlines, and most recently AirTran and Southwest Airlines deemed it necessary to consolidate their resources in an effort to survive. In fact, mergers and acquisitions saved United Airlines, as well as AirTran, and have done what they were intended to do by increasing competition, offering competitive fares, and more destination options for their consumers. As our economy improves, airlines are posting record profits for the first time in over ten years, but it still may not be enough to save American Airlines – a “Legacy Carrier” of the United States. Apart from the potential size of our impending union, I ask you what is different from past mergers? We are simply seeking to compete with our larger competitors. Consequences of Your Lawsuit If your efforts are successful, I believe you will have done a disservice to the airline industry and the economy of the United States. You will have cost the thousands of employees at American Airlines their jobs, some of whom have served over forty years in their positions, sacrificed, and would be severely impacted by your actions. To conclude, I strongly urge you to rescind your lawsuit, and allow for our merger to continue as planned. We depend on government officials to act in the best interest of the consumer. We look forward to a resolution that will benefit the employees of US Airways, the New American Airlines, and the American consumer. Sincerely, Ian Funderburg, Flight Attendant US Airways, Inc.
Posted on: Sat, 24 Aug 2013 03:33:33 +0000
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