United and US Air said to be in merger talks . . .

dealbook.blogs.nytimes.com/2010/ … ger-talks/

Noooooooooooooooooooooooooo :frowning:

It’s supposed to be UAL and COA!

  • A Houston based 1K

As a UA ff, hope this doesn’t happen, USAir routes don’t help UA as much as CO would. I personally have had more bad than good experiences on US Air, and nothing but great service on CO. Hopefully, this is a ploy to get CO to the table!

When I first heard about it, I heard it as US Airways was going to buy United Airlines which is like America West buying US Airways.

UA and US tried this a few years ago. Didn’t work then.

“How could a company from Philadelphia buy a company from New York?”

It should be American/ United. I was right about the NWest/Delta merger 2yrs ago. US Airways is a low class airline.

I hope this doesn’t happen. I fly US Airways often (only boat into the town my folks live in) and the quality has gotten much worse over the years. We heard great predictions for the America West takeover and nothing good has come of it. I can’t imagine this would make any difference either.

You were saying???

Continental, United in talks
Last week, United and US Airways reportedly were discussing a merger.

By DAVID KOENIG Associated Press
Published: 4/16/2010 2:23 AM
Last Modified: 4/16/2010 5:33 AM

DALLAS - Shares of Continental Airlines and the parent of United Airlines rose Thursday after reports that the carriers are talking about combining to create the world’s largest carrier.

The New York Times DealBook blog cited people briefed on the discussions who said the talks were in early stages and could still collapse.

The news comes a week after reports that United and US Airways have been talking about combining. Analysts say a United-Continental combination makes more sense than United hooking up with US Airways because of Continental’s strong international routes.

A spokeswoman for United said it doesn’t comment on rumors. Continental Airlines Inc., which rejected a combination with United in 2008, also wouldn’t comment.

Former Continental CEO Gordon Bethune said no one has told him that his old company is talking to United, “but if they weren’t, I’d be surprised.”

If United combines with US Airways instead, Continental would be left as the smallest of the so-called legacy airlines. “They have to look” at a deal with United, Bethune said in an interview. “It’s a combination of two carriers who fit strategically, globally.”

Shares of Continental rose 52 cents, or 2.2 percent, to close at $23.77. United parent UAL Corp. jumped $1.18, or 5.3 percent, to $23.54, while US Airways Group Inc. fell a penny to $7.41.

If they combine, United and Continental would become the world’s largest airline by traffic, jumping over Delta Air Lines Inc. A United-US
Airways combination would still be smaller than Delta, which bulked up by buying Northwest in 2008.

Standard & Poor’s analyst Jim Corridore reiterated his “Hold” rating on UAL shares after the New York Times report.

“We think there are merits to a combination of United with either party, but believe (Continental-United) would be a more compelling option, with less network overlap and a stronger international network,” Corridore said.

William Swelbar, an airline industry researcher and consultant who has advised Continental on labor issues, said a United-Continental merger would face fewer labor problems than a United deal with US Airways.

Combining different airline labor groups can be thorny. US Airways pilots are still fighting over a 2005 combination with America West. And already the head of the pilots’ union at United, Wendy Morse, has said a merger with US Airways likely wouldn’t help her pilots.

Morse said Thursday that Continental “represents a more logical merger partner for United Airlines” and would create a stronger company. She said pilots’ jobs would be safer because United has less overlap on routes with Continental than with US Airways.

Continental executives have long said they preferred to remain independent, but the changing landscape of the airline industry could force them into a merger.

Size matters to international airlines because high-fare business travelers demand convenient schedules to places they want to go.

Continental has always been big enough to compete. But if it stands idle while United combines with US Airways, Continental would be half the size of Delta and the new United-US Airways, and far smaller than American Airlines too.

The push to consolidate also is being driven by a belief in the airline business that the industry will benefit if there are fewer carriers. The remaining airlines would have more power to raise fares to cope with high fuel prices.

Some analysts think Continental could still go it alone, but if it doesn’t combine with United now, it won’t get another chance.

Read more from this Tulsa World article at tulsaworld.com/business/arti … LLAS844646