Merger vs. Integration

Transaction structures

Deal architects mix and match features to balance regulatory risk, tax structures, balance sheets, and labor dynamics. Common structures include:

• Full statutory merger – two corporations combined into one surviving entity, typically aligned with a single certificate and a clear “combined airline” identity.
• Holding company structures – a parent entity owns multiple certificates. Integration of operations and crews may lag the corporate combination, raising single-carrier and scope questions.
• Asset transfers – gates, slots, aircraft, or routes move between carriers without a full corporate merger, often affecting crews through base and flying shifts.
• Joint ventures and alliances – can function like integration in practice, with deeply coordinated schedules and networks, even if no merger is announced.

The label attached to a transaction (“merger,” “integration,” “partnership”) is less important than the actual legal and operational structure and how it interacts with representation, seniority, and scope.

Key terms and glossary

Merger

In the classic sense, a merger is a statutory combination of two corporations into one. One entity survives; the other is folded into it. Assets, liabilities, and contracts are consolidated into a single corporate shell.

In airline practice, a merger usually aligns with:

• A clear “surviving carrier” identity;
• Regulatory approvals from DOJ, DOT, and others;
• A path to a single-carrier finding at the NMB;
• A formal process for seniority integration and eventual JCBA bargaining.

For crews, a merger usually signals that management intends to move toward a single operating airline with unified branding, a combined seniority list, and one collective bargaining agreement for each craft or class.

Integration

Integration is a looser term. Management may talk about “integrating” schedules, revenue management, brands, or networks long before there is a single legal merger or a single certificate.

Integration language can include:

• Deep codeshares and aligned schedules;
• Shared branding, liveries, and marketing;
• Common management teams and joint planning;
• Transfers of flying between entities under common control.

From a crew perspective, integration without a clear merger plan can feel like “merger consequences first, labor clarity later.” The airline may be presenting itself to the public and regulators as a unified network while leaving representation, seniority, and scope questions unresolved.

Single-carrier (NMB)

Under the Railway Labor Act, the National Mediation Board decides when two or more carriers have become a single transportation system for representation purposes. That determination is often referred to informally as a “single-carrier” finding.

The Board looks at factors such as:

• Common management and control of labor relations;
• Integrated operations (dispatch, scheduling, maintenance control);
• Branding and public presentation as “one airline”;
• Financial and operational interdependence.

For crews, the single-carrier question is central because it controls when separate bargaining units may be combined, when representation questions are asked, and when groups move toward a single JCBA.

Majority absorption

Majority absorption occurs when, in a merger or single-carrier context, the National Mediation Board (NMB) determines that one union represents more than 50% of the combined craft or class. If no competing claim is filed, the NMB may certify that union as the representative of the entire combined workforce without an election. Majority absorption can materially affect seniority integration processes, the collective bargaining environment, and the eventual scope and character of a merged contract.

Showing of interest (SOI)

Showing of interest (SOI) is the formal demonstration—usually via signed authorization cards—that a significant portion of the craft or class wishes to be represented by a different union than the one that would otherwise obtain representation through majority absorption. The NMB generally requires at least 35% SOI to trigger an investigation or election. A timely SOI can block or delay automatic majority absorption, shifting the representation outcome from an automatic certification to a contested process under NMB supervision.

After a single-carrier determination, majority absorption or an election resolves which union is certified as representative of the combined group. Joint contract negotiations do not begin immediately at that point. The certified union must first establish merged governance structures, complete or verify a merged seniority list under its own merger policy, and develop unified bargaining goals. Only after those internal steps, and with the National Mediation Board’s involvement where required, do joint negotiations toward a single, merged contract for the craft or class actually begin—typically months, not days, after a single-carrier determination.

Joint collective bargaining agreement (JCBA)

A joint collective bargaining agreement, or JCBA, is the contract that governs the combined group of employees after a merger or single-carrier finding. Negotiating a JCBA is often the last major step in “completing” a merger from the crew perspective.

The path typically runs:

• Management announces a deal structure (merger, integration, or hybrid);
• Regulators review and act on the transaction;
• The NMB addresses single-carrier questions;
• Representation is clarified and seniority integration is addressed;
• A JCBA is negotiated to combine or update contract language for the unified group.

The quality and timing of the JCBA go a long way toward determining whether crews see the combination as value-creating or value-destructive for their careers.

Seniority integration

Seniority integration combines two or more seniority lists into one. For pilots, flight attendants, and other crafts, seniority determines:

• Base placement and equipment;
• Monthly schedule quality;
• Upgrade timing and long-term earnings;
• Exposure during downsizing or volatility.

Different mergers and transaction structures can imply very different seniority integration paths, including negotiated lists, arbitrated solutions, or formulas defined in a merger agreement or union policy.

Fences

Fences are temporary rules that limit the movement of flying, bases, or equipment between pre-merger groups until all key integration steps are complete. They are often negotiated to protect each group during the transition.

Fences can:

• Stabilize base and equipment assignments for a defined period;
• Limit displacement caused by rapid schedule or fleet shifts;
• Give time to resolve seniority and JCBA issues before full mixing;
• Provide predictable phases for how flying and crews move between operations.

From the line perspective, the details of fence language can be as consequential as the headline merger or integration announcement itself.

Scope

Scope clauses define what flying must be done by the bargaining unit. In integration or merger scenarios, scope can:

• Protect flying from being outsourced or shifted to affiliates;
• Limit how much capacity can be moved to non-represented or lower-cost entities;
• Constrain management’s ability to “restructure” using parallel certificates.

Where scope is weak, flying can migrate outside the mainline list even as the company describes the transaction as a merger or integration. Understanding how scope interacts with the proposed structure is critical for line crews.