Airline Maniac

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Archive for the 'US Airways' Category

May 30 2008

United Scraps Merger Plans

United Airlines has desperately been seeking a merger partner in the last few months. First they flirted with Continental Airlines. Continental reviewed there options, and decisively replied with a “no”. With their tail between their legs, United approached US Airways. Interestingly, it seemed like United had found it’s merger partner. US Airways had merged with American West Airlines in 2005 and was also considering a merger at the time.

After weeks of intense negotiations, something odd happened. United backed up. They told the public that “issues that could significantly dilute benefits from a transaction” had caused them to change there mind. With this in mind, it seems as the only merger from 2008’s “Merger Mania” that could possibly be completed will be the Delta-Northwest one.

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