United pilots say US Airways merger should be 'last resort'

Steve Wallach, who also sits on the board of directors at United parent UAL Corp., reiterated pilots' "serious concerns" a day after flight attendants of both airlines also questioned the potential deal.

The unions spoke up as Chicago-based United and US Airways Group Inc. continue talks about a tie-up that could create the world's largest airline. A decision on whether to proceed is expected soon.

While analysts say a United-US Airways combination could result in substantial cost savings for the two airlines, Wallach -speaking on behalf of United's approximately 7,000 pilots -said such benefits are unlikely to achieved.

Not only would it be unlikely to take traffic from other carriers because of the proposed Delta-Northwest combination, he said, but the chaotic labor situation at US Airways would delay integration and make any cost savings unlikely at least in the short term.

Also, Wallach said, continued high fuel costs and high integration costs could deplete cash reserves.

"Moreover, we believe there are a number of operational issues at United that need to be addressed, and that it is a mistake to sit idly by waiting for a merger to bail us out," he said in a statement.

The US Airways pilots union -the US Airline Pilots Association -hasn't weighed in on the issue. A group of America West pilots says they'd like a merger, but that group doesn't represent all pilots.

The flight attendants of the two airlines issued a joint statement on Tuesday that looked negatively on a possible combination, citing the "dangers of multiplying those (management) failures by forcing them under one roof."

"In order for such an inherently risky and complex business transaction to be successful, there must be an underlying rationale and an accord with flight attendants," said union leaders Greg Davidowitch of United, Mike Flores of US Airways and Gary Richardson of America West, which acquired US Airways in 2005. "To date there is no evidence of either."

Asked to comment on the union statements, United spokeswoman Jean Medina said: "Of course our unions would be involved in any consolidation discussions." She declined comment on any specific ongoing talks.

UAL shares declined 32 cents, or 2.3 percent, to $13.83 in afternoon trading. US Airways shares, which soared last week on speculation about a combination with United, fell 62 cents, or 7.7 percent, to $7.41.

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