EXCLUSIVE-American pilots union chief says United CEO's merger idea showed 'bold vision'

By Rajesh Kumar Singh

CHICAGO, May 4 (Reuters) - The head of American Airlines' AAL.O pilots union told members that United Airlines UAL.O CEO Scott Kirby's merger idea showed the kind of "bold vision" the carrier needs, even as the union stopped short of endorsing a tie-up between the two airlines.

In an email to pilots on Monday, seen by Reuters, Allied Pilots Association President Nick Silva said Kirby's vision could be "transformative" for passengers, communities and American Airlines pilots.

While the email did not endorse a United-American merger, Silva used Kirby's proposal as an opportunity to reiterate criticism of American's leadership, which faces pressure from its unions over its financial underperformance.

American did not immediately respond to a request for comment on the matter.

United said last month it had ended its pursuit of a merger with American after the rival carrier declined to engage following an initial approach. American has said a merger with United would be bad for competition and for consumers.

UNION PRESSURE BUILDS

The email suggests that the merger proposal, although rejected by American amid major regulatory hurdles, has created a fresh source of pressure inside the airline. For APA, it has become part of a broader argument that American needs a more ambitious strategy to close the gap with stronger rivals.

"(Kirby) articulated a bold vision for the future of air travel that could be transformative for our passengers, the communities we serve, and, foremost, the very people at American that our C-suite has chosen to disrespect: you," Silva wrote.

Silva said Kirby's vision may remain only an "aspiration" for now, but argued that its ambition highlighted how far American had fallen behind both domestic and international competitors.

Unions representing American's pilots and flight attendants have criticized the company's strategy and its failure to match the financial performance of Delta Air Lines DAL.N and United.

Silva said APA's message has focused on management's lack of a long-term strategy, the "unacceptable" state of the airline, and the union's openness to "any path forward" that would allow pilots to work at an airline that values them and "not only competes but leads the industry."

"It's clear that it will take bold ideas and real leadership to restore American to a true place of prominence among global airlines," Silva wrote.