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Report: US Airways Ends Merger Talks with United

April 22, 2010 | Posted in: Airline News,United,US Airways

us airways merger talks united

From the New York Times: US Airways has ended its merger talks with United Airlines; in the meantime, United’s conversations with Continental continue.

Apparently, US Airways decided to withdraw once Continental entered the picture.

The Times quotes one analyst as saying that playing the Continental card was probably a calculated move on UA’s part: “It is highly likely that United engaged in talks with US Airways in order to prompt Continental” to negotiate, said Jeff Straebler, a strategist at RBS Securities. Now, “United will do all they can to close a deal.”

2 Responses to “Report: US Airways Ends Merger Talks with United”

  1. Interesting. What’s your view, Rick, on what would be the best deal for consumers? A merger of US/UA or UA/CO or US/UA/CO (ha!)?

  2. Rick Seaney says:

    Andy,

    Well, I think we can count US Airways out of the mix now (though I’ve learned in the air travel industry to, never say “never”). So would a UA/CO merger be good for consumers? Yes and no. Mergers generally mean higher prices – which could be given a boost by the recovering economy – but mergers also mean, airline survival, and that’s always good for consumers.

    Cheers,
    Rick

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