Up In The Air
Merger mayhem: Confessions of a spooked Continental flight attendant
When it comes to the merger keeping Continental Airlines in the news, insider info is scarce.
"The running joke among Continental employees is that we'll get the news after (the media) does," says one of the airline's flight attendants (who requested to speak anonymously) of his company's merger with United.
Though the deal with United Airlines is said to keep the same number or more jobs in Houston for Continental employees, concerns over workforce issues, management and United's financial woes dominate. While Continental CEO Jeff Smisek declared the merger, "a match made in heaven," today, there's considerably more doubt about that from his workforce — especially those who won't have offices in the Windy City sky.
"We were hoping the deal would be an acquisition," the flight attendant says. "There was a feeling that with their debt and the rate that they are losing money that United could not stay in business. And since they filed for bankruptcy less than two years ago, they aren't eligible to file for Chapter 11, so the next step would be Chapter 13, which is liquidation.
"If that happened Continental could buy out the airline, which would be much easier for the employees," continues the flight attendant, who has been with Continental for 12 years.
When it comes to the complicated issue of seniority, the basis from which pilots and flights attendants pick their routes and schedules, what changes could be coming in the immediate future are unclear.
"I was riding on the airport shuttle with a US Air(ways) flight attendant, and she said in the three years since they merged with America West there has been no merging of the workforce," the Continental flight attendant says. "They have one name and they moved the headquarters, but aside from that they are essentially still flying two separate airlines.
"The flight attendants have two different contracts, don't work together on the same flights and there's a sense of animosity between the factions," he continues. "So if we use US Air as an example, especially considering the greater size of Continental and United, it's going to take quite a while."
On whether retaining much of the Continental management (including CEO Jeff Smisek, who will helm the new United) is a plus, the flight attendant has mixed feelings.
"I have a very good friend who works at United and they've been unhappy with management for years, so they are excited about the merger," he says. "But taking on all that debt is a huge issue for me. I'd be more confident if we were going in with our last CEO from two years ago. This guy, I don't think he cares about how he leaves the airline."