Aviation News

April 7, 2010

US Airways Negotiating Merger with United Airlines

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By: Matt Molnar
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US Airways could be weeks away from announcing the purchase of United Airlines, according to a NY Times report published this afternoon.

United and US Airways are deep in their merger discussions, though a transaction is not expected to be announced for at least several weeks, these people said, cautioning that talks may still collapse. One potential hurdle could be union opposition.

The two airlines have tried—and failed—to merge twice previously. In 2000 a $4.3 billion deal was shelved due to fierce union opposition. A 2008 merger attempt was also scrapped.

Considering US has not completely ironed out the labor issues resulting from its 2005 merger with America West, it is safe to say the union end of this deal will not go smoothly.