Chicago is My Home

29
Apr

United Airlines Parent UAL Corp. Turns to US Airways For Possible Merger

Author: Adam Fendelman, Category: Travel

CHICAGO – Spurned at the altar by Continental Airlines on Sunday, UAL Corp. – which is the Chicago-based parent company of United Airlines – is now said to be looking to US Airways to negotiate a possible merger.

A vocal advocate for consolidation in the airline industry, UAL CEO Glenn Tilton told employees in a message on Monday that the company will pursue other options.

“We continue to evaluate our options and will do what is right for United,” Tilton said. “We also continue to believe that new business models are required to respond to the challenging market environment. For a shift of that magnitude, management teams must fully embrace the inevitability of change and have a meeting of the minds for any prospective partnership to be successful.”

US Airways, which is based in Phoenix, Ariz., has long been on UAL’s radar as a potential partner.

Overlapping routes, however, make US Airways a weak candidate for a United merger in the eyes of many experts. Thus far, spokespeople for both airlines have declined to comment on a potential merger. Insiders say it may be weeks before any possible deal could be made public.

By Megan O’Neil