April 22, 2010, US
Airways Group, Inc. announced that it has discontinued recent
discussions with United Airlines Corporation regarding a potential
merger between the two companies. US Airways Chairman and CEO Doug
Parker issued the following statement.
“It remains our
belief that consolidation makes sense in an industry as fragmented as
ours. Whether we participate or not, consolidation that leads to a more
efficient industry better able to withstand economic volatility, global
competition and the cyclical nature of our industry is a positive
“We have recently held discussions with United Airlines regarding a
possible combination between our two airlines. After an extensive review
and careful consideration, our Board of Directors has decided to
discontinue those discussions.
“While it is our policy not to comment on rumors concerning strategic
transactions, because of the persistent rumors about a possible
transaction with United Airlines we believe it is appropriate to clarify
the status of those negotiations. In the future, we will continue to
follow our policy of not commenting on potential strategic transactions
until we have entered into a definitive agreement with respect to a
“It remains our belief that consolidation makes sense in an industry as
fragmented as ours. Whether we participate or not, consolidation that
leads to a more efficient industry better able to withstand economic
volatility, global competition and the cyclical nature of our industry
is a positive outcome.
“The US Airways team is doing an outstanding job of running a reliable
airline, taking care of our customers and keeping our costs down. We are
well along the road to near-term profitability and are well-positioned
for sustainable, long-term success. As the industry becomes less
fragmented and more stable, everyone will benefit.”
Morse Air Line Pilots Association International
said"it has been our long-standing position that the pilots of United Airlines would support a merger if such a transaction would benefit the careers and futures of our pilots. Several media outlets have reported that United and Continental have reopened merger talks. For United's pilots, Continental, rather than US Airways, represents a more logical merger partner for United Airlines.
“In light of the
recent reports of merger discussions between United Airlines and US
Airways, it is our belief, along with many analysts, that a merger
between United and Continental would contain less route overlap and
greater attainable synergies. These factors would contribute to the
protection of pilot careers, lead to long-term security for both
airlines' pilot groups and produce a stronger overall enterprise.
|©AvStop Online Magazine Contact Us Return To News|