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United Drops US Airways Deal, Woos Continental

CEO says UAL 'very close' to Continental merger

By Matt Cantor,  Newser Staff

Posted May 30, 2008 7:15 AM CDT
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(Newser) – A proposed merger between United Airlines and US Airways is on hold again, the Wall Street Journal reports. United’s CEO told his US Airways counterpart that his airline is close to a deal with Continental, a merger that would be less costly and wouldn’t face as much antitrust scrutiny as a United-US Airways deal, the Journal notes. United’s revelation follows rejection from Continental last month.

United CEO Glenn Tilton said he was "very close” to merging with Continental, which also has weighed joining forces with American Airlines. The suspension of the United-US Airways talks ruffles expectations that April’s Delta-Northwest merger would spark more deals among major carriers. Sky-rocketing fuel costs have roiled the industry.

In this Jan. 16, 2007 file photo, Continental Airlines jets parked at gates at George Bush Intercontinental Airport in Houston, Texas.
In this Jan. 16, 2007 file photo, Continental Airlines jets parked at gates at George Bush Intercontinental Airport in Houston, Texas.   (AP Photo/David J. Phillip, File)
Passengers stand in line to check their luggage at the US Airways counter at Washington's Ronald Reagan National Airport, Thursday, May 1, 2008.
Passengers stand in line to check their luggage at the US Airways counter at Washington's Ronald Reagan National Airport, Thursday, May 1, 2008.   (AP Photo/Jose Luis Magana)
In this July 31, 2006 file photo, a United Airlines plane leaves San Francisco International Airport.
In this July 31, 2006 file photo, a United Airlines plane leaves San Francisco International Airport.   (AP Photo/Paul Sakuma, file)
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More on the suspended merger
Reuters

Without mergers, cuts may be key
New York Times

 
airline industry • merger • US Airways • United Airlines • Continental Airlines

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