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United CEO Jeff Smisek said in a memo to pilots in May that the company would adjust its contract offer to be competitive with pay raises that Delta pilots got in a new contract. In that deal, Delta got the flexibility to use more planes with 70 to 76 seats that are typically flown by feeder airlines
-- a concession that pilot unions for the big carriers have long opposed. Neither United nor the union would say how the proposed contract would deal with feeder airlines. But Pierce said in an interview that United pilots will get parity with Delta counterparts on pay and benefits while United will get "the flexibility to work and compete in the new world." As the number of big U.S. airlines has shrunk through mergers -- Delta bought Northwest in 2008
-- the carriers have reduced seats and pushed up prices and added new fees to offset expensive jet fuel. Higher fares helped United Continental earn about $1 billion since the start of 2010. United, however, has struggled at times to combine two independent airlines under a single wing. Smisek has admitted stumbles, including technical problems that have plagued the company's reservations system since separate United and Continental systems were combined in March. Although it has dropped the Continental name, United still operates much like two airlines, with Continental flight crews still flying the former Continental planes. United Continental shares rose 10 cents to close at $18.26. Most other airline stocks were also up modestly.
[Associated
Press;
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