United Continental merger completed: Union pacts to take a year (Image: United Airlines)
Smisek says union pacts can take a year or more


The head of the new United Airlines announced Friday that union rules are slowing down the company by prohibiting it from flying larger regional jets, a key issue as the world’s largest carrier begins an integration process anticipated to last up to 18 months.


Jeff Smisek, chief executive of United Continental Holdings Inc., said it would take at minimum, a year to secure new joint collective bargaining agreements with staff at the legacy Continental and United airlines, which merged Friday.


The new deal hammered out with pilots will be important in determining the future size and shape of the new airline, with flight crews pushing for a team that limits outsourcing of lying to regional partners.


Source: The Wall Street Journal

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