Skip to: Content
Skip to: Site Navigation
Skip to: Search
SATURDAY, NOVEMBER 7, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


0

Another United Merger Crashes

Talks with US Airways on permanent hold

Share

(Newser) – A proposed merger between United Airlines and rival US Airways has collapsed, just a month after a deal between United and Continental fell apart. Some analysts predicted the rising cost of jet fuel would power merger deals, but the failed negotiations have raised serious questions about the success of future consolidation in the airline industry, reports the New York Times.

“There is capital out there, but not for old-fashioned mergers," said a veteran airline industry consultant. ”Mergers in and of themselves are not the answer. Look around the world—airlines are making money in Europe, Asia and Latin America. We need to cut capacity, meaning both aging aircraft and flights."

A passenger checks his luggage at the US Airways counter at Ronald Reagan National Airport. Talks between United Airlines and US Airways about a merger have collapsed.
A passenger checks his luggage at the US Airways counter at Ronald Reagan National Airport. Talks between United Airlines and US Airways about a merger have collapsed.   (AP Photo/Jose Luis Magana)
Continental Airlines jets at gates at George Bush Intercontinental Airport in Houston, Texas. A potential merger between United and Continental fell through last month.
Continental Airlines jets at gates at George Bush Intercontinental Airport in Houston, Texas. A potential merger between United and Continental fell through last month.   (AP Photo/David J. Phillip, File)
United Airlines proposed merger deal with US Airways has fallen through less than a month after a merger with Continental collapsed.
United Airlines proposed merger deal with US Airways has fallen through less than a month after a merger with Continental collapsed.   (AP Photo/Paul Sakuma, file)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.6.09
Galleon Scandal: Shocked, Shocked by Insider Trading
11.5.09
Rupert Murdoch Is Mad but Cute
0 comments
VIEWING:
 
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

43 Stories

ANALYSIS

Aging Airlines Can't Catch Up to Younger Rivals

Recent changes haven't helped 'legacy' carriers

Apr 7, 09 8:52 AM CDT
(Newser) - Despite many rounds of cost-cutting, so-called legacy airlines—United, Delta, US Airways—still face costs 35% higher than low-fare carriers like JetBlue and Southwest, the Wall Street Journal reports. The younger outfits have maintained a “cost gap” analysts thought their older peers could close over time. For one thing,... More »

MORE ABOUT:
Delta Air Lines • JetBlue • Northwest Airlines • US Airways • United Airlines • Frontier Airlines • AirTran • Southwest Airlines • Continental Airlines • Air Canada • fuel costs • airlines • airplanes • low-fare carriers

 Feds OK Delta-Northwest Deal 

Merger would create world's largest airline

Oct 29, 08 2:49 PM CDT
(Newser) - Delta’s $2.6 billion offer to buy Northwest Airlines has passed the scrutiny of federal antitrust regulators. Ensuing labor issues aside, official say the merger—which creates the world’s most patronized airline—would not "substantially lessen competition" and will benefit customers, Reuters reports. More »

MORE ABOUT:
Department of Justice • mergers and acquisitions • Northwest Airlines • antitrust • Delta Airlines

Airlines Trim Holiday Flights, Cut Off-Peak Bargains

US Airways will fly 40% fewer flights this Thanksgiving

Oct 21, 08 1:54 PM CDT
(Newser) - As airlines struggle to stay competitive, scheduling changes mean that consumers will see fewer planes and higher fares, the Wall Street Journal reports. In the coming Thanksgiving season, US Airways is flying 40% fewer flights than a year ago. Delta and United have both reduced Thanksgiving flights by more than... More »

MORE ABOUT:
Delta Air Lines • US Airways • flights • Southwest Airlines • Thanksgiving • price increases • Thanksgiving travel • airlines

Shareholders OK
Delta-Northwest Merger

Deal awaits approval from antitrust regulators

Sep 25, 08 2:45 PM CDT
(Newser) - Shareholders of Delta and Northwest voted nearly unanimously today to approve the airlines' merger, the Atlanta Journal-Constitution reports. With shareholders in agreement, federal antitrust regulators must now approve the deal. A Justice Department decision is expected late this year, but labor issues remain. Dozens of workers protested today outside the... More »

MORE ABOUT:
airline industry • Delta Air Lines • mergers and acquisitions • Northwest Airlines • Delta Airlines • mergers • International Association of Machinists and Aerospace Workers

opinion

 United Should Be Liquidated

Why the airline doesn't deserve a second chance

Aug 13, 08 5:49 PM CDT
(Newser) - What with the oil price spike, times are rough all around for airlines, writes Roben Farzad for BusinessWeek. But United presents a uniquely bungled case, and it is irresponsible to pity it along with other struggling players in the industry. "Even if the airline devised a way to run... More »

MORE ABOUT:
cost cutting • pensions • airline industry • United Airlines • strike • credit crisis • fuel costs

43 Stories


United Airlines raises fares, may match American Airlines' $15 bag fee
Dallas Morning News

2 US carriers postpone launch of new China routes
Canadian Press


Business 
TwitterFollow @NewserBusiness on Twitter

 
Department of Justice • Delta Air Lines • Northwest Airlines • US Airways • United Airlines • Continental Airlines • fuel costs • mergers • America West • Glenn F. Tilton

from our news partners