Chicago is My Home

05
May

Report: Continued Merger Talks Between United Airlines, U.S. Airways Intensify

Author: Adam Fendelman, Category: Travel

CHICAGO – Merger talks between United Airlines parent UAL Corp. and U.S. Airways have intensified, according to a Wall Street Journal report on Monday.

The Wall Street Journal says a deal could be announced within 10 days. A tumultuous market has forced many carriers to consider consolidation. In March 2008, Delta Air Lines and Northwest Airlines merged to create the world’s largest airline.

United’s parent company has been looking for a merger partner for months and was expected to close a deal with Continental Airlines last week. Continental surprised United, however, and pulled back from the discussion table on April 27, 2008.

United quickly turned to U.S. Airways and the two airlines have identified more that $1.5 billion in cost savings, according to the Wall Street Journal article. Any deal would be fraught with labor and regulatory issues, according to insiders, and the looming detailed negotiations will be delicate.

By Megan O’Neil