Integration vs Merger
What each term means in airline reporting, why it matters for labor representation, and how the National Mediation Board (NMB) fits in.
Quick Definitions
Integration / Alliance: Coordination of selected operations or programs (e.g., codeshare, reciprocal loyalty earn/burn, limited schedule coordination, lounge reciprocity). Each carrier remains a separate corporate entity with its own operating certificate, workforce, and collective-bargaining agreements.
Merger: Two companies combine into a single corporate entity. Over time this yields one operating certificate, unified branding, and—after the applicable statutory steps—joint labor agreements and integrated seniority lists.
Typical Features
| Topic | Integration / Alliance | Merger |
|---|---|---|
| Corporate status | Separate companies | Single combined company |
| Operating certificate | Separate AOCs / DOT authority | Move toward a single AOC |
| Loyalty programs | Reciprocal earn/burn; status recognition | Full consolidation over time |
| Scheduling / slots | Selective coordination where permitted | Unified network planning |
| Labor contracts | Remain separate; no automatic changes | Joint bargaining for a single agreement |
| Seniority lists | Unaffected | Integrated via applicable procedures |
| Regulatory review | Alliance/transaction-specific + antitrust oversight | Formal merger review/approvals |
National Mediation Board: Brief History & Role
The National Mediation Board (NMB) is an independent federal agency established by the 1934 amendments to the Railway Labor Act (RLA). It facilitates labor-management relations in the railroad and airline industries by mediating disputes, conducting representation elections, and determining when carriers operate as a “single transportation system” (often called “single-carrier” status) for representation purposes. See the NMB’s Mission & Organization page for an official overview.
Under the RLA framework (1926; amended 1934, 1966), the NMB’s “single transportation system” determinations are a key trigger: once two carriers are found to be a single system for a given craft or class, representation can be extended, terminated, or put to an election, and the combined group typically proceeds toward joint bargaining.
Notable NMB Single-Carrier Determinations (Merger Context)
- Delta Air Lines / Northwest Airlines (Pilots) — Single-carrier finding and certification following merger: 36 NMB 17 (2009) and 36 NMB 21 (2009).
- Southwest / AirTran (Pilots) — Certification of SWAPA for the combined pilots’ craft/class: 41 NMB No. 61 (2014).
- United / Continental / Continental Micronesia (Passenger Service) — Single-carrier finding for passenger service employees: 39 NMB 229 (2011); see also follow-on discussion at 39 NMB 278 (2012).
- Alaska / Virgin America (Clerical, Office, Fleet & Passenger Service) — Single-carrier determination post-merger: Case R-7484 (2017); see also 44 NMB No. 12 (2017).
Single-Carrier Determinations Without a Formal Merger
While mergers commonly lead to single-carrier findings, the NMB can make this determination absent a statutory merger if labor relations and control have, in substance, been integrated. The Board looks for substantial integration of operations, financial control, and labor/personnel functions (see standards summarized in 39 NMB 2 and 35 NMB 19).
- Holding-company subsidiaries — The Board has found single-carrier status among subsidiaries where management and labor control were centralized even with separate corporate charters or FAA certificates. Example: regional consolidation under a single parent (e.g., Pinnacle/Mesaba/Colgan for Flight Attendants: 39 NMB 327 (2012)).
- American Eagle / “brand” systems — NMB annual reports in the early 1990s reference consolidated American Eagle proceedings, reflecting how common control/brand operations can lead to single-system treatment even across technically separate companies (see 1991–1992 NMB Annual Reports).
- When integration is insufficient — The Board has also rejected single-carrier status where common ownership existed but labor relations and operations remained distinct (e.g., World Airways / North American, 40 NMB 29 (2012)).
Why Findings Are Craft-by-Craft
Under the Railway Labor Act, representation and bargaining are organized by craft or class (pilots, flight attendants, mechanics, passenger service, dispatch, etc.). Each has its own union certification and contract. Accordingly, the NMB evaluates single-carrier status for each group separately, often on different timelines, depending on how integrated that group’s operations and labor relations are.
- Example—Southwest/AirTran (Pilots only): The NMB certified SWAPA for the combined pilots’ craft/class while other groups followed separate tracks and timing (41 NMB No. 61).
- Example—Delta/Northwest (Pilots first; others later): Pilot integration and common control supported an early pilots’ finding (e.g., 36 NMB 21). Other crafts/classes were addressed in subsequent proceedings as their integration matured.
Key Take-aways
- Integration ≠ merger. Integrations improve connectivity and customer benefits without changing employers, representation, or seniority lists.
- Mergers add legal and labor steps. After a merger, NMB single-carrier determinations (by craft/class) often trigger representation changes and joint bargaining.
- No merger necessary. The NMB can find a single transportation system without a formal merger if control and labor relations are centralized.
- Craft-by-craft. Because the RLA organizes representation by craft/class, NMB findings and elections occur group-by-group, not all at once.
Informational only; not legal advice. For more, visit the National Mediation Board.