United Talks Merger with US Airways

Following Continental’s unexpected bailout on merger negotiations, United Airlines stepped up their talks with US Airways. An announcement is expected within weeks that the two are combining.

A merger between United, based in Chicago, and US Airways, based in Tempe, Ariz., could create an airline that would rival a combined Delta-Northwest for the title of world’s largest airline.

According to insiders, officials for United and US Airways have been in merger talks for weeks, and have only recently begun more advanced negotiations after Continental ended talks with United.

United Airlines and US Airways have combined revenues of $31.8 billion, and a total of more than 91,000 employees between the two.

Industry experts say the two airlines are under pressure to consolidate if they are to remain competitive following the proposed formation of a Delta-Northwest mega-carrier.

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