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United, US Airways Reportedly In Merger Talks
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April 8, 2010 9:35 a.m. EST
Topics: merger, acquisition and takeover, transport, company information, economy, business and finance, air transport, United States
Ayinde O. Chase - AHN News Editor
New York, NY, United States (AHN) - United Airlines and US Airways are in talks about a possible merger. Should the deal be finalized, it would create the country's second largest carrier.
The talks made public in published reports are the latest measure to consolidate the struggling airline industry. Airlines have been struggling for the better part of a decade and are forced to contend with marked decreases in both leisure and business travel.
This isn't the first time the two airline giants have been down this road. Previous merger talks collapsed in 2000. A $4.3 billion deal was announced, however after opposition from the Justice Department and unions it was withdrawn. Again in 2008 merger talks ended after several months of negotiations.
There is also some suggestion this latest round of merger discussions is just a ploy to reinvigorate merger talks with Continental.
Critics have said the United States has too many airlines and not enough passengers.
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