Alaska-Hawaiian Merger
August 20, 2024 — Alaska and Hawaiian management have satisfied any questions raised during the Department of Justice’s (DOJ) review of the proposed merger. This means DOJ will not take further actions and has essentially approved the merger.
The Department of Transportation (DOT) has the authority to review international routes and general compliance with DOT requirements as it relates to the merged carrier. This has typically been a perfunctory approval.
Mergers take time — this first hurdle only relates to the financial closing of the merger which can now proceed. DOT and the Federal Aviation Administration will play a significant role in the operational merger.
As a reminder, the transition period includes specific protections for Flight Attendants as negotiated between our union, and both Alaska and Hawaiian management. Review last week’s communication on the Merger Transition Agreement (MTA). Negotiations for a contract at Alaska will continue separately according to the Railway Labor Act. Improvements for Alaska Flight Attendants will set a higher starting point for JCBA negotiations.
We will all do better through our solidarity. Stay close to union communications, fly safe, and as always look out for each other. We are stronger and better together.
- Alaska-Hawaiian Merger Moves Forward, August 20, 2024
- Protections Secured for Flight Attendants in the Alaska-Hawaiian Merger, August 15, 2024
- AFA Alaska-Hawaiian Merger Meeting, April 26, 2024
- Alaska-Hawaiian Merger Meeting, February 6, 2024
- Alaska-Hawaiian Announce Merger: What Flight Attendants Need to Know, December 3, 2023
AFA Merger Q & As
Q: What is the Timeline for a Corporate Merger?
A: The Department of Justice (DOJ) must approve the merger and determine that it does not violate any antitrust laws or regulations. Only after the DOJ gives its approval to the transaction, can the actual conclusion of the financial transaction (corporate merger) happen. There is no set timeline for the DOJ review and approval.
Q: When would the operations of the two carriers be merged?
A: It will be a while, at a minimum 12-18 months. This is a journey of a thousand steps. Throughout it all, your AFA leadership will be representing your best interests and negotiating for the best outcome for Flight Attendants.
Q: What exactly is “integration” and when would it happen?
A: It is important to understand that “integration” applies to many steps along way to completely combining the two carriers:
- Integration of corporate management and departments (Labor Relations, Legal, Finance, etc) is one aspect of integration and could possibly happen quickly after DOJ approval and the financial close of the corporate merger.
- Operational Integration of policies, maintenance procedures and manuals, etc. leading up to a Single Operating Certificate takes over a year and longer.
- Seniority list integration – we will conduct our bidding “date of hire” seniority integration process with Flight Attendant representatives from each airline, but management will not receive the completed list until a merged contract is ratified.
- Contract Integration – negotiating the Joint Collective Bargaining Agreement (JCBA) and finalizing a process agreement which allows for a smooth and orderly combining of the two labor groups (eg. Alaska Flight Attendants and Hawaiian Flight Attendants) requires Flight Attendant ratification - and this step can only take shape alongside the operational integration.
- Operational Integration, including combined reservations and scheduling. Again, this will take time, likely a couple years if the merger moves forward.
Q: What bases would open and close at the combined carrier?
A: The airlines have stated all bases will remain open and contractual protections will protect base assignments.
Q: How would the seniority lists be combined?
A. A Seniority Merger Integration Committee (SMIC) with Flight Attendant representatives from both carriers will be established and representatives may only be chosen by Flight Attendants from each respective pre-merger airline. The SMIC will review the records of every Flight Attendant and ensure no one leap frogs another Flight Attendant on each respective list, while also assessing whether adjustments of bidding seniority dates should reflect time in training consistently for both groups. This process is transparent and includes a verification period with the opportunity for each individual Flight Attendant to review their seniority date before the list is final.
Q: What is the AFA merger policy that will govern how the Flight Attendant groups are integrated?
A: The AFA Merger Policy can be found in the AFA International Constitution and Bylaws, Section X. AFA has vast experience with mergers and negotiating agreements that protect our members and keep Flight Attendant interests front and center.
Q: Will negotiations continue for our own Alaska Flight Attendant Contract?
A: Yes. We are continuing with the Alaska contract negotiations. Improvements are needed now and will help raise standards for Flight Attendants on the industry whether this merger is approved or not.
Q: How would the merged contract be negotiated?
A: Under the AFA Constitution & Bylaws, a Joint Negotiating Committee (JNC) will be formed following Single Carrier Determination by the NMB. Flight Attendants from both airlines will be members of the JNC, and JNC may only be chosen by Flight Attendants from their respective pre-merger airlines. The JNC will negotiate a Joint Collective Bargaining Agreement (JCBA) attempting to combine the best from each Flight Attendant Contract in addition to other improvements. The tentative JCBA will be voted on by all Flight Attendants at the merged airline and must receive a majority vote in favor by the combined group for ratification.
Q: When would the Flight Attendant Groups be combined?
A: The Flight Attendant groups cannot be combined until the JCBA is ratified and the seniority list is merged and accepted. In addition, combining carriers includes FAA oversight of safety policies and procedures - leading to the Single Operating Certificate. Flight Attendants will take part in “differences training” to ensure certification is the same on each aircraft. The company will also need the ability to schedule crew with a combined system.
The expanded flying opportunities and route network typically provides more choice for Flight Attendants in bidding and managing our schedules.
A: Some call it a merger, others call it an acquisition. Does it matter?
A: An acquisition is a technical finance term about the financial transaction between the two airlines. No matter what the technical financial transaction is called — the two companies must be merged together. The merger begins once the financial transaction is approved. Nothing changes for Alaska Flight Attendants or Hawaiian Flight Attendants until the airlines are in merger mode. That’s why we don’t refer to the financial transaction, because it doesn’t change your contract or your legal rights during the actual merger. When and if we get to an “approved deal” involving these airlines, that is when the merger starts and that is what it is called no matter how management initiated the deal.
