ASA-XJT Merger Proposal Update

Atlantic Southeast’s parent company, SkyWest Inc., announced Wednesday, August 4th, they intend to purchase ExpressJet Holdings, Inc. SkyWest officials are planning to fold ExpressJet’s operations into those of SkyWest subsidiary Atlantic Southeast Airlines, which SkyWest bought from Delta in 2005. 

The deal, the biggest ever in the regional airline business, would consolidate most of the regional flying done for United and Continental under SkyWest’s umbrella next year, just as United and Continental expect to consummate their pending merger.  Customary antitrust and DOT regulatory approvals are required. The company also says it negotiated a long-term service agreement between Atlantic Southeast and Continental that will commence once ExpressJet’s operations are merged into Atlantic Southeast’s.

We know this type of major news can be very unnerving, as there are so many unknowns in the equation.   Any information we have we will pass along to you as soon as it becomes available.  Following are some questions that may be on your mind:

What will happen to XJT flight attendant seniority?

Historically, the IAM’s seniority integration policy has been to integrate by the current date of hire into the specified classification (dovetailing).  However, the IAM recognizes that sometimes issues arise that require more consideration than a simple dovetailing. The IAM will create seniority integration committees made up of representatives from both pre-merger airlines to resolve seniority disputes when they arise. If agreements cannot be reached, the issues will be submitted to a neutral arbitrator for resolution.

The IAM has a history of protecting seniority in mergers – that is not the case for all unions. For example, when United bought Pan Am’s Pacific routes in 1985, AFA argued before a neutral arbitrator that Pan Am flight attendants should be stapled to the bottom of the combined seniority list.

In contrast, when US Airways and America West merged, the IAM’s merger policy protected the seniority dates of employees at both carriers, even if they were formerly members of another union.

Will we still work under our XJT contract?

Even after there may be operational integration, IAM flight attendants will continue working under the terms of their ExpressJet contract until two things happen:

1. Representation issues are resolved and the combined flight attendants are represented by a single union
                       – AND -
2. The surviving union negotiates an agreement with the new carrier to bring all flight attendants under a single collective bargaining agreement.
Similarly, pre-merger ASA flight attendants will continue working under the terms of the agreement they negotiated with ASA until negotiations for the combined group are concluded.

The IAM-ExpressJet agreement already surpasses the ASA agreement in many ways and your bargaining committee is currently beginning negotiations with ExpressJet to improve on what is already a leading contract in the regional airline industry.

Which union will represent XJT flight attendants?

If a merger is completed, one issue that will be addressed is which union, if any, will represent flight attendants at the combined airline. The National Mediation Board (NMB), the government agency responsible for conducting airline union representation elections, has procedures to resolve representation disputes in airline mergers. Ultimately, flight attendant union representation will be determined by a vote of flight attendants.

Will we keep our current XJT crew bases?

It is expected that all crew bases will remain in place due to the fact that the company has already negotiated a long term service agreement with Continental contingent on the completion of the merger.

IAM Response

Our own International Association of Machinists and Aerospace Workers (IAM) General Vice President Robert Roach Jr., made the following statement in response to the announcement of a proposed merger between ExpressJet Airlines and Atlantic Southeast Airlines:

“It is not a surprise that the merger-mania roiling the major airlines is spreading to regional carriers. The lack of any appreciable regulation in the airline industry ensures that carriers large and small will continue to tear each other down and exacerbate their failure to serve passengers, employees and  communities.

The Machinists Union will protect our ExpressJet Flight Attendants and defend their contract if this merger with Atlantic Southeast Airlines goes forward. We will work with the carriers, legislators and government regulators to ensure our members are beneficiaries, rather than victims, of consolidation.”

Your IAM representatives met with XJT management just two days after the announcement.  However, not much information was shared, as it is not available at this early point in a merger.  The company has agreed to keep the IAM informed as developments occur and information becomes available.  The IAM currently has a Merger Summit that will include representatives from your Local Lodge scheduled August 29th-September 1st that will include ExpressJet/ASA merger plans and implications.