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United Airlines looks for new merge partner
South East Asia News.Net
Monday 5th May, 2008
United Airlines is looking at a possible merger with US Airways after its advances to Continental were rejected.
The Wall Street Journal has reported talks have been ongoing for six weeks and a decision could be taken in the next ten days.
UAL and its smaller rival, US Airways, have reportedly identified 1.5 billion dollars in cost savings and revenue enhancements that could arise from a merger.
While regulatory and labour issues could cause merger problems, United and US Airways together would become the world's largest airline, slightly bigger than the new Delta-Northwest group.
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