facebook
twitter
rss
account
search
search
 

United turns to second choice Tuesday

April 29, 2008 at 1:19 PM   |   Comments

CHICAGO, April 29 (UPI) -- Combining United Airlines with US Airways Group is not as good a fit as a United merger with Continental, industry analysts said Tuesday.

United had been pursuing a deal with Continental, but Continental bowed out Sunday and United has turned its focus back to US Airways.

But, "I don't think it makes the same sort of sense as with Continental," industry consultant Robert Mann Jr. told Crain's Business Journal.

"You don't get the robust international network on the Atlantic or in Latin America as you would with Continental," he said.

With less extensions to its service routes and more overlap, a United-US Airways merger would lead to more job cuts, compared with a deal with Continental, analysts said.

Considering a possible United-US Airways merger, J.P. Morgan Securities Inc. analyst Jamie Baker wrote the idea had "considerable merit," Crain's reported.

The merger would be "materially less complex," than a deal with Continental, Baker wrote.

US Air Chief Executive Officer Doug Parker has said he was willing to consider a merger.

"Our industry is far too fragmented and consolidation, if done properly, could result in a much healthier industry," he wrote in an April 16 letter to employees.

© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
GM recalls 221,000 Cadillacs and Impalas GM recalls 221,000 Cadillacs and Impalas
2
Slovakia sees Russian gas volumes drop Slovakia sees Russian gas volumes drop
3
Greenpeace puts more pressure on LEGO Greenpeace puts more pressure on LEGO
4
Iran could retool pipeline for Pakistan Iran could retool pipeline for Pakistan
5
Ground broken on Azeri gas pipeline for Europe Ground broken on Azeri gas pipeline for Europe
Trending News
Video
x
Feedback