United and US in 'Very Advanced' Merger Talks

**Matt Molnar** · 04-28-2008, 11:39 AM

AP source: United, US Airways in 'very advanced' combo talks
Apr 28 11:50 AM US/Eastern
By DAVE CARPENTER
AP Business Writer

CHICAGO (AP) - United Airlines and US Airways are in very advanced talks with the expectation of announcing within two weeks that they are combining, a person close to the negotiations told The Associated Press on Monday.

The two carriers stepped up their talks after Continental Airlines Inc. caught United off guard by deciding not to pursue a deal with the UAL Corp.-owned carrier.

The source asked not to be named because of the sensitive nature of the talks. The timing of any agreement remains hard to predict, and either side also could pursue an alliance instead or simply walk away from a deal, as Continental did. [Full Article]

**markg** · 04-28-2008, 12:02 PM

I don't understand why UA/US want to merge. They are going to have to give up something to avoid anti-trust on the east coast. Hopefully it will be Philly, which will give Southwest the inroad that they need/want

**RDU-JFK** · 04-28-2008, 12:07 PM

The ink isn't dry on the nuances of the US-HP merger...

**bonanzabucks** · 04-28-2008, 12:47 PM

Tilton seems obsessed of merging with someone else no matter what. This reeks of desperation.

**lijk604** · 04-28-2008, 01:46 PM

Originally Posted by bonanzabucks

Tilton seems obsessed of merging with someone else no matter what. This reeks of desperation.

I agree 100%, I feel he wants to merge so he can get his golden parachute and walk away from this nightmare.

**T-Bird76** · 04-28-2008, 02:02 PM

UAL's recovery plan was doomed from the start. It based itself on Oil prices around 55 bucks a barrell and we know where there that went.

**bonanzabucks** · 04-28-2008, 02:28 PM

Originally Posted by T-Bird76

UAL's recovery plan was doomed from the start. It based itself on Oil prices around 55 bucks a barrell and we know where there that went.

Well, in January 2007, oil was at about $55/barrel. I think few would have expected it to more than double to where it is today. I don't necessarily blame them for their plan.

**JetBlueAirwaysFan** · 04-28-2008, 03:03 PM

The only thing that would easily merge with these two airlines is the reservations system because of their existing codeshare alliance IMO.

**lijk604** · 04-29-2008, 02:32 PM

Originally Posted by bonanzabucks

Originally Posted by T-Bird76

UAL's recovery plan was doomed from the start. It based itself on Oil prices around 55 bucks a barrell and we know where there that went.

Well, in January 2007, oil was at about $55/barrel. I think few would have expected it to more than double to where it is today. I don't necessarily blame them for their plan.

Whether it was expected to double or not, expecting it to stay at $55/barrel or below was EXTREMELY short-sighted. It's a shame that it has come to this, but I do not expect UAL to last much longer with the world the way it is today. You will either see a second bakruptcy very soon, or they will be combined with another carrier no later than 2009.

Now, whether or not US Airways is the right fit, I doubt it. I honestly think COA pulled out in hopes of UAL going belly up and then acquiring the assets they want for pennies on the dollar.

**Ari707** · 05-01-2008, 12:28 PM

If they do merge would US still pick up the A340 for the china rte. or just use a 777???

**T-Bird76** · 05-01-2008, 01:33 PM

Originally Posted by Ari707

If they do merge would US still pick up the A340 for the china rte. or just use a 777???

Mate they'd have the China route if they merged with UAL...UAL fly's to China from SFO and LAX. No need for the A340.

Taking a page from the AA TWA deal "Two Great Airlines, One Great Future." UA and US can use "Two $hitty Airlines, One F%^Ked up Future." Or to keep it simple and accurate..."FU!"