US Air, United merger stalls

MERGER talks between US Airways and United Airlines have broken down. US Air claims that United was more interested in pursuing a merger with Continental.

US Airways and United were apparently only days away from reaching an agreement when talks that United had been having with Continental were revealed.

If Continental and United go ahead with their talks, with US Airways out of the picture, they could soon reach a resolution.

Jean Medina, a spokeswoman for United, confirmed that the talks with US Airways were over, but wouldn’t give any further information about the airline’s talks with Continental.

Continental’s chief executive officer, Jeff Smisek, said: “We are examining Continental’s options and will take whatever action we believe to be in the best interest of our stockholders, customers, employees and the communities we serve.”

US Airways chief executive officer, Doug Parker, told employees: “Over the past several months, we have studied a transaction with United. However, those talks have not progressed to a merger agreement, and for the foreseeable future we intend to remain a stand-alone carrier.”