United, USAir could talk merger
The CEOs of United and US Airways are meeting today, and merger talks may not be too far off. But despite obvious hurdles, including different labor unions and systems, Jeremy Hobson reports they may not have much choice.
The tail of a United aircraft (Paul J. Richards/AFP/Getty Images)
More on Travel
TEXT OF STORY
Scott Jagow: The CEO's of United and US Airways are getting together for a chat today. I'm sure after they talk about what new fees they can charge and what else they can cut out, they'll discuss a merger. Jeremy Hobson has more.
Jeremy Hobson: There are the obvious hurdles to talk about: combining different labor unions, different systems and fleets. Plus, who would run the new company? And where would it be headquartered?
But Daniel Petree at Embry Riddle Aeronautical University says in the current environment, United and US Airways don't have much choice.
Hobson: Do you think the option for these big carriers right now is combine or go out of business?
Daniel Petree: Ummm . . . it's very hard to argue that the status quo can continue.
There's also a feeling that if the airlines are going to consolidate, they'd better to do it while President Bush is in office.
Here's airline industry analyst Robert Mann:
Robert Mann: They want to get this Justice Department involved, which they think they understand, as opposed to the next Justice Department which they may or may not understand.
And, Mann says, if the Northwest-Delta merger goes through, it would be hard for authorities to say no to United and US Airways.
In Washington, I'm Jeremy Hobson for Marketplace.
Comments
Comment | Refresh
Post a Comment: Please be civil, brief and relevant.
Email addresses are never displayed, but they are required to confirm your comments. All comments are moderated. Marketplace reserves the right to edit any comments on this site and to read them on the air if they are extra-interesting. Please read the Comment Guidelines before posting.
You must be 13 or over to submit information to American Public Media. The information entered into this form will not be used to send unsolicited email and will not be sold to a third party. For more information see Terms and Conditions and Privacy Policy.