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UA/CO Pilot Agreement?

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Well-known member
May 12, 2002
Can anyone tell me what issues were agreed to "in principal" from this?

HOUSTON and CHICAGO, July 20, 2010 /PRNewswire via COMTEX/ --
United Airlines (Nasdaq: UAUA) and Continental Airlines (NYSE: CAL) today announced they have reached an agreement in principle on a transition and process agreement with the pilots of both companies.
The agreement provides a framework for pilot operations of the two groups until the carriers' operating certificates are combined.
"This is an important step forward that reflects the hard work and collaborative dialogue required to reach this transition agreement that is in the best interest of our new company and our pilots," said Glenn Tilton, United chairman and chief executive officer, who will serve as non-executive chairman of the merged company.
"We are pleased to have reached this important agreement at such an early stage of the integration planning process, as it is a key first step in building a long-term, productive relationship between the combined company and our pilots," said Jeff Smisek, Continental's chairman, president and chief executive officer who will serve as chief executive officer of the combined carrier. "We will continue to focus on working together with all of our work groups to reach agreements that are fair to our employees and fair to the company."
The companies expect to close the merger in the fourth quarter of 2010.
This is just the transition agreement, this has protections for the United guys so that United can't shrink while CAL grows. CAL already had this protection in our Scope clause, plus how things will proceed in regards to negotiotions if this merger fails and how they will run things up to Single Operating Certificate. All the detail have not been released yet.
I spoke to one of the UAL Merger Committee members a few weeks ago and he said that Management was still targeting September to have a Joint Contract in place. It sounded like an ambitious timeline, but maybe this transition agreement is a positive first step.
Does anyone know if there will be any immediate "bones" thrown to the pilots with this new transition agreement? What did Delta/Northwest get? Will we get an automatic pay raise, profit sharing, stock options etc with this or do we have to wait until we sign a JCBA? Or is this agreement more of just a template of the way the negotiations will take place?

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