UAL Corp. and US Airways Group Inc., caught between long-standing airline industry concerns and new realities, face difficult choices in deciding whether to pursue a merger or carry on as independent carriers.
Both US Airways and UAL, parent of United Airlines Inc., have been seeking a partner for the better part of two years. When talks heated up between the airlines last month, many thought the companies had finally found a transaction that would allow them to cut capacity and overhead costs in the face of cutthroat competition and rising fuel prices.
Harlan Platt, a finance professor at Northeastern University who follows the airline industry, described the talks between United and US Airways as "like two condemned prisoners sitting down the night before their execution," willing to discuss anything.
"The failure to find a partner simply shows that no easy solutions exist," Platt said. "This is the most dire moment in the entire history of the industry."
If you'd like to read this entire article, please visit: http://paradigmshiftpr.com/media/placements/forcesplagueairdeal.htm
Posts
0 comments:
Post a Comment