TWO MONTHS AGO UNITED AIRLINES AND US AIRWAYS announced that they were looking into a merger that would combine the #2 United with #7 US Air and create the largest U. S. carrier in traffic volume.

This morning the CEO’s of the two companies distributed letters to their respective employees that they have decided to not proceed at this time with the proposal.

The immediate financial outlook for the major airlines discourages capital investors and lenders from putting needed cash into the merger.

In a separate venture, United and Continental Airlines are continuing talks about creating a working alliance, as opposed to a merger.

The details of these developments are spelled out in an article from AP Business News HERE.

Trackback This Post | Subscribe to the comments through RSS Feed