MERGER INFO
We are in the process of updating this merger tab so that you can reference and be up to date on the information during each phase of the merger. Mergers take time, and information is only relayed when a milestone has occurred, so check back often to see if any information has been updated. Listed below is some basic merger information that you may find helpful.
What is a Merger? A merger is a transaction that combines all aspects of two airline operations into a new entity and a single operating certificate.
How Does a Merger Work? Mergers happen in phases, where each phase plays a crucial role in the process. Throughout the process, each airline continues to operate separately under its own certificate until the merged airline receives its single certificate.
What Is the Timeline of a Merger? Depending on the size of the companies, mergers can take as little as 6 months, or several years until everything is fully integrated. The process involves legal approvals, integrating operations, standardizing fleets, and unifying corporate cultures. The first four steps in the anatomy of an airline merger are the announcement, shareholder approval, regulatory approval, and merger close.<--We are here, which is Phase 1.
What changes can we expect to see during a merger?
Changes that could occur include:
• Operational control systems and or operational locations
• Routes/route structure and airplane models/differences
• Revisions to manuals containingprocedures for conducting various operations
• Maintenance and inspection programs
• Revisions to training curriculums
• Change in Contract or Union
(Unions will conduct a joint contract negotiations)
The information outlined about is to provide you with a general overview of what airline employees can expect during this process. As someone who has first-hand experience with airline mergers at major US carriers, I can understand all the concerns and uncertainty you may be feeling. We hope some of this information can help mitigate some of those concerns with a better understanding of the process.
Along with our website, be sure you are checking for communication from your company email or your AFA newsletters.
Thank you!
Rosanna Scollo, MEC Communications Chair
Below are some info cards and terms you'll hear throughout the merger process. The Phase and Info cards will be updated as we cross into each phase or with any other relevant info. Each phase is crucial to the next, and one phase cannot begin until all the boxes are checked off in the previous one. It is very important we understand the process to avoid any speculation on how this process is conducted.
