REPORT: US AIRWAYS, UNITED CLOSE TO MERGER
US Airways Group Inc. and United Airlines are reportedly close to a merger agreement.
The Associated Press was reporting Monday that the airlines "are in very advanced talks and expect to announce within weeks that they are combining."
The report cited two unnamed sources who are "familiar with the negotiations." It said representatives of the companies declined to comment.
Tempe, Ariz.-based US Airways (NYSE:LCC) is the dominant carrier at Philadelphia International Airport. United is a subsidiary of UAL Corp. (NASDAQ:UAUA) of Chicago.
UAL Chairman, President and CEO Glenn Tilton issued a statement Sunday saying, "Consolidation is underway -- ensuring you have the right partner is everything. We will pursue all options to ensure a strong, sustainable future for our airline and will not shy away from the tough choices necessary to create value for our shareholders and benefit our employees and customers."
Talk on Wall Street and comments posted on aviation message boards of late has centered around a merger between US Airways and United. Some industry analysts and consultants have said any US Airways merger would only further complicate pilot seniority issues the airline and its newly elected pilot union are facing.
In 2000, US Airways and United tried to merge, but the deal was eventually blocked by the Department of Justice.
Source - Philadelphia Business Journal