History
  • No items yet
midpage
662 F.3d 954
7th Cir.
2011
Read the full case

Background

  • Republic Airways Holding acquired Midwest Airlines in July 2009 by purchasing Midwest Air Group and Midwest held an air carrier certificate.
  • McCaskill-Bond Amendment requires merging seniority lists when two or more air carriers combine into a single air carrier in a covered transaction.
  • Post-merger, Republic integrated operations, schedules, reservations, and staff with Midwest and its affiliates, effectively forming a single carrier for many purposes.
  • Republic furloughed Midwest's flight attendants and placed them at the bottom of the Teamsters seniority roster; Teamsters contested this placement.
  • National Mediation Board concluded Midwest flight attendants were part of a single bargaining unit with Republic’s other carriers, supporting integration of seniority.
  • The district court initially ruled against the Union but later granted reconsideration; the Seventh Circuit reverses, holding the transaction was covered and required seniority integration.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does the Republic–Midwest transaction trigger McCaskill-Bond’s covered-transaction rule? Teamsters contend the transaction is not a covered transaction that requires integration. Republic argues the merger created a single air carrier and thus falls within the statute. Yes; the transaction is covered and produced a single air carrier.
Is a carrier's bankruptcy or disappearance at closing relevant to covered status? Teamsters argue the statute should not apply if the carrier is going out of business. Republic maintains the statute covers transactions regardless of post-closing vitality of the acquired carrier. Post-closing continuity is not required; coverage applies even where the acquired entity wanes.
Whether transfer to a single air carrier mandates immediate seniority-list integration across the merged entities. Teamsters seek to preserve separate seniority pools for acquired carriers. Statute requires merging seniority lists to reflect a single carrier for covered transactions. Seniorities must be merged; Midwest’s integration with Republic and affiliates invoked McCaskill-Bond’s requirements.

Key Cases Cited

  • Teamsters Union, Airline Division v. Frontier Airlines, Inc., 708 F. Supp. 2d 750 (E.D. Wis. 2010) (supports interpretation of McCaskill-Bond coverage and seniority integration in airline mergers)
Read the full case

Case Details

Case Name: Committee of Concerned Midwest Flight Attendants v. International Brotherhood of Teamsters Airline Division
Court Name: Court of Appeals for the Seventh Circuit
Date Published: Nov 30, 2011
Citations: 662 F.3d 954; 2011 U.S. App. LEXIS 23785; 2011 WL 5974288; 192 L.R.R.M. (BNA) 2268; 11-1921
Docket Number: 11-1921
Court Abbreviation: 7th Cir.
Log In
    Committee of Concerned Midwest Flight Attendants v. International Brotherhood of Teamsters Airline Division, 662 F.3d 954