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Seniority Issues Prompt UAL Pilots to Oppose US Air Deal

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From Associated Press

UAL Corp.’s proposed $4.3-billion takeover of US Airways Group Inc. ran into more turbulence Friday when the leaders of its pilots union went on record against it after three days of meetings.

“It looks like we’re the only ones that got left out in this deal,” said United Airlines pilot Herb Hunter, spokesman for the Air Line Pilots Assn.

Hunter said a “very strong” majority of the union’s 27-member master executive council voted to express opposition to the merger, which would combine the world’s largest airline with US Airways, the nation’s sixth-largest airline.

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Although pilots don’t have veto power over the merger, United could find it nearly impossible to carry out the plan effectively without their support.

The vote, though highlighting the difficult path the merger faces before it can go through, came as no surprise.

The counciladopted a statement that left the door open to backing the deal if certain demands are met.

“The United Airlines pilots are unhappy with this deal as it is presently structured,” the statement said. “Therefore, the UAL pilots’ master executive council cannot at this time support the transaction.”

The pilots’ biggest concern is losing seniority when United’s 10,000 pilots are blended with US Airways’ 6,000. Because US Airways has hired few pilots in recent years, its pilots have higher seniority and many United pilots could stand to lose in rank, assignments and pay.

United pilots also are seeking a substantial increase in pay and other changes in contract negotiations that have been stalled for months.

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Shares of UAL closed up 94 cents at $54.06, and US Airways fell $1 to close at $43.38, both on the New York Stock Exchange.

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