US Airways Discontinues Merger Talks With United Airlines

US Airways Discontinues Merger Talks With United Airlines <

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US Airways Discontinues Merger Talks With United Airlines By Eddy Metcalf

		April 22, 2010, US Airways Group, Inc. announced that it has discontinued recent discussions with United Airlines Corporation regarding a potential merger between the two companies. US Airways Chairman and CEO Doug Parker issued the following statement. “It remains our belief that consolidation makes sense in an industry as fragmented as ours. Whether we participate or not, consolidation that leads to a more efficient industry better able to withstand economic volatility, global competition and the cyclical nature of our industry is a positive outcome.” “US Airways has long been a proponent for consolidation in our industry. As opportunities have arisen for our company to participate in consolidation, we have taken a close and careful look at our options, always with an eye on what is in the best interests of our shareholders, customers, employees and the communities we serve.

“We have recently held discussions with United Airlines regarding a possible combination between our two airlines. After an extensive review and careful consideration, our Board of Directors has decided to discontinue those discussions. “While it is our policy not to comment on rumors concerning strategic transactions, because of the persistent rumors about a possible transaction with United Airlines we believe it is appropriate to clarify the status of those negotiations. In the future, we will continue to follow our policy of not commenting on potential strategic transactions until we have entered into a definitive agreement with respect to a specific transaction. “It remains our belief that consolidation makes sense in an industry as fragmented as ours. Whether we participate or not, consolidation that leads to a more efficient industry better able to withstand economic volatility, global competition and the cyclical nature of our industry is a positive outcome. “The US Airways team is doing an outstanding job of running a reliable airline, taking care of our customers and keeping our costs down. We are well along the road to near-term profitability and are well-positioned for sustainable, long-term success. As the industry becomes less fragmented and more stable, everyone will benefit.”

Captain Wendy Morse Air Line Pilots Association International said "it has been our long-standing position that the pilots of United Airlines would support a merger if such a transaction would benefit the careers and futures of our pilots. Several media outlets have reported that United and Continental have reopened merger talks. For United's pilots, Continental, rather than US Airways, represents a more logical merger partner for United Airlines.

“In light of the recent reports of merger discussions between United Airlines and US Airways, it is our belief, along with many analysts, that a merger between United and Continental would contain less route overlap and greater attainable synergies. These factors would contribute to the protection of pilot careers, lead to long-term security for both airlines' pilot groups and produce a stronger overall enterprise.

"We have been down this path before, and we have a long-standing working relationship with the pilots of Continental. We would parlay this relationship to help make a merger between United and Continental viable for both pilot groups, as well as toward the success of the combined operations."

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