According to the Wall Street Journal, United Airline's parent company, UAL Corp., and US Airways are again in merger talks.
It seems further consolidation was inevitable after Northwest and Delta's merger, so it's not surprising that they're trying to merge again. I just wonder what exactly this will mean for consumers.UAL Corp.'s United Airlines and US Airways have resumed discussions of a potential merger that would create a new global airline behemoth, people familiar with the matter said Wednesday.
The talks are the latest in a decade-long dance between the two big airlines and have recently heated up after months of off-and-on conversation, these people said. One person said the talks "aren't that far along," and could falter again as they have in the past, these people said.
Much remains undecided, including which CEO would run the combined company. The companies have not seriously discussed how a deal would be structured, though it would probably involve a stock swap because neither airline wants to deplete its cash reserves, one person familiar with the talks said.
UAL is the nation's third largest airline by traffic, and US Airways is the sixth. A merger would create the nation's second-largest air carrier behind Delta Air Lines Inc., which merged with rival Northwest in 2008. The new carrier would combine United's strength on international routes across the Pacific and domestic focus in the Midwest with U.S. Airways' large presences on the East coast and in the western U.S.