US Airways Said to Be in Talks to Buy United The UAL Corporation, the parent of United Airlines, and US Airways are in talks to merge, in a potential deal that would create one of the world’s largest airlines, people briefed on the matter said on Wednesday. The negotiations mark the latest efforts to consolidate the struggling airline industry. Both companies have been vocal in calling for greater consolidation within the industry to help prop up falling revenues, with United’s chief executive,Glenn F. Tilton, among the leading proponents for more mergers. United and US Airways are deep in their merger discussions,though a transaction is not expected to be announced for at least several weeks, these people said, cautioning that talks may still collapse. One potential hurdle could be union opposition.
Source: The New York Times
By: AlphaChi1989 - 29th April 2010 at 05:33
US Airways cut 10 aircraft from fleet, may see 2nd qrt profit
US Airways ended the 1st quarter with a loss, but with $2 billion of cash on the balance sheet, of which $1.6 billion was unrestricted. The airline says that if improvements continue it may see a profit the second qrt. 2010.
US Airways’ mainline fleet will be reduced by 10 net aircraft to 339 by year end, representing the removal of 14 aircraft and the addition of four, according to Executive VP and CFO Derek Kerr. He said the airline will retire five of its 24 737-300s, five of 28 757-200s, and four of 19 E-190s – all of which are dedicated to the East Coast shuttles.
It added two A320s and two A330-200s in the first quarter, the only aircraft it will take in 2010. It will add 12 A320s each in 2011 and 2012. Kerr said it will be out of its 737 Classics within five years while it will retain around 23 757s dedicated to its transatlantic and Hawaiian networks. Last year it deferred delivery of 54 Airbus aircraft.
Some believe US Airways is still a player in the consolidation scene, even though it recently decided to end merger talks with United Airlines. The triggers could be higher fuel costs, and economic recovery with more unemployment, and little or no growth in jobs.
By: cloud_9 - 27th April 2010 at 21:14
Well latest news is that CO and UA are in “advanced” merger talks…
– United Airlines would be the surviving brand.
– Jeff Smisek (Continental’s Chairman and Chief Executive), would head the combined company
– Glenn Tilton (United’s Chairman and Chief Executive) would become Chairman of the combined company.
– The new company would be based in Chicago, where United has its headquarters.
According to news report, the merger could be agreed within a matter of weeks, and it would create the world’s largest airline by passenger numbers.
By: ThreeSpool - 26th April 2010 at 19:23
Wouldn’t it be great though if there was a 3-way merger involving CO, UA & US…now that would be some merger, and a pretty big airline!?:D
No, it wouldn’t. It would be a terrible mess. :rolleyes:
By: cloud_9 - 26th April 2010 at 17:58
They’ve probably pulled the plug on possible merger talks in order to see if CO/UA decide to get any closer than they already are as they are more suited to each other. As the article suggests, CO broke off merger talks two years ago, but a lot has happened since then, so maybe this time it might work out.
Wouldn’t it be great though if there was a 3-way merger involving CO, UA & US…now that would be some merger, and a pretty big airline!?:D
By: AlphaChi1989 - 26th April 2010 at 16:06
Update : US Airways backs off merger, to wait a while
http://www.app.com/article/20100422/BUSINESS/4220336/1003/business&source=rss
By: AlphaChi1989 - 8th April 2010 at 19:12
US Airways-United merger
Both airlines have been shrinking to cope with the crashed USA economy. United cut capacity 7.4 percent last year, while US Airways shrank 4.6 percent. US Airways is cutting most flying that doesn’t pass through either Washington or its hubs in Charlotte, N.C., Philadelphia, or Phoenix.
US Airways lost $205 million in 2009, and revenue fell almost 14 percent to $10.46 billion.
UAL lost massive $651 million:eek:, while revenue fell 19.1 percent to $16.34 billion
http://news14.com/charlotte-news-104-content/top_stories/624266/united–us-airways-in-merger-talks
Charlotte Douglas new runway opened 2010
http://www.charmeck.org/charlotte/Newsroom/News+2010/100211AirportRunway.htm
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April 7, 2010 at 11:40 pm