AirCal Employees Upbeat Over News of Deal With American

AirCal employees, who had helped the airline weather hard times in the early 1980s by taking pay cuts, had a generally positive reaction Monday to the news that AirCal would be bought by American Airlines.

Word of the merger clattered over the interoffice Teletype machines at AirCal’s Newport Beach headquarters at 7 a.m., and reaction--and speculation--began immediately.

“I think it’s positive,” said Susan Weile, 25, a reservations agent. “I think AirCal is a great airline; American has been around forever.” The merger should increase career opportunities for AirCal’s employees and provide American with a larger market, she said.

Many of the airline’s senior employees endured a 10% pay cut in 1983 to help it regain its health after several fare wars with rivals in the Los Angeles-to-San Francisco corridor cut deeply into the regional carrier’s finances.

‘Lot of Questions’

Now, some of those employees are worried about whether the merger might have some drawbacks for them. “I was a little surprised,” said Tara Mitschrich, 30, another reservations agent. “There are still a lot of questions to be answered.”

The major question for AirCal employees Monday was whether the work force of about 3,500 would still have jobs when the merger is completed.

But on Monday, job security seemed relatively assured.

Both Al Becker, a spokesman for American, and William Lyon, chairman both of AirCal and its parent company, ACI Holdings, said no layoffs are expected as a result of the merger. Becker said American intends to absorb AirCal employees into its system.

But, in a written statement Monday, American stopped short of a firm promise that every current AirCal employee would have a job with American.

“The merger of American Airlines and AirCal will bring important benefits to both companies,” Robert L. Crandall, American’s chairman and president, said in the statement. “American will do its best to offer every AirCal employee an opportunity to become a member of the American Airlines family.”

Lyon’s Future Uncertain

Lyon said in an interview Monday that AirCal has been looking for ways to maximize its value for shareholders and to give its employees more security and stability. The merger with American should provide both, he said.

Lyon would not comment on his own future or that of other senior management. He plans to stay with the airline until the merger is completed.

Most of the AirCal employees interviewed Monday outside the Birch Street headquarters in Newport Beach echoed the optimism voiced by Crandall and Lyon, although some uncertainty was evident in many comments.

“Everyone feels pretty strong about being merged with American, because it’s going to make us stronger,” said Mark Oliver, 25, a reservations agent. “But a lot of people with low seniority feel insecure because their seniority might not be honored (by American) and they could be let go.”

Oliver said his colleagues voiced three major concerns when word of the merger came: whether American will honor AirCal’s salaries, whether AirCal employees will keep their seniority and whether they will have to move to take jobs in other locations that American serves.

All of AirCal’s reservations agents now work out of the Newport Beach headquarters, while American has offices around the country. Oliver said he believes that many AirCal reservations agents “would quit if they had to move. . . . Most live within 10 miles” and few would be happy about trading Newport Beach for some of the less amenable areas that American serves.

An uncertain job future did not faze Felicia Helzerman, 23, who already has been around the skies with the airline industry. Helzerman, a reservations agent, started working with AirCal just four months ago. Before joining AirCal, she was a flight attendant with Western Airlines, which is being taken over by Delta Air Lines.

“I’m excited,” Helzerman said. “If they do hire us, they do. If they don’t, they don’t. I’ve worked for other airlines. I’ll just switch again. I’ve done it before.”

John Conley, vice president of Local 505 of the Transport Workers Union, said: “Anything I’ve been told has not indicated any loss of jobs.” The local represents various ground employees for both airlines, Conley said, and a merger should strengthen the union’s position in the company. ACI HOLDINGS AT A GLANCE Newport Beach-based ACI Holdings is the parent of AirCal Inc., which operates commercial flights in California, Nevada, Oregon, Washington, Alaska, Illinois and British Columbia. During 1985 the airline logged 1.84 billion revenue-passenger miles with a load factor of 56.6% compared to a breat-even load factor of 54.2%.

Assets: $188 million Employees: 3,500 Shares outstanding: 8.5 million 12-month price range: $6.75-$14.375 Monday close (Amex): $14.375, up $4.00 Source: Standard & Poor’s