Fuel costs add to merger issues, CEO says

CHICAGO, April 4 (UPI) -- The rising price of oil has "exacerbated" the problems caused by mergers, UAL Corp. Chief Executive Officer Glenn Tilton said.

In a speech prepared for the U.S. Chamber of Commerce, released to Crain's Business Journal, Tilton said "the negative outcomes commonly associated with mergers, such as reduced flights, customer service cuts and job losses … are exacerbated by a fragmented market dealing with the unprecedented price of oil."

Tilton has been frequently quoted as favoring the merger of UAL's United Airlines with another large carrier.

This year, Delta Airlines and Northwest Airline Corp. have discussed a possible merger, provoking a response from United to seek out a merger with Continental Airlines Inc.

"Consolidation will create stronger global networks to connect U.S. businesses to the world -- access that makes U.S. commerce more competitive," Tilton's prepared text says.