CHICAGO (AP) — United Airlines scrapped its latest attempt to combine with US Airways and create the world's largest carrier, formally backing away Friday from a deal that likely would have meant fewer routes and higher ticket prices for consumers.
Now the question for those and other U.S. airlines is how to get by and make money with oil prices near $130 a barrel.
The decision came against the backdrop of the latest rise in oil prices over $127 a barrel Friday after a recent drop.
"The failure of United to find a merger partner is not surprising given the fact that no airline, Southwest included, can survive at $130-per-barrel oil," said Harlan Platt, a finance professor at the business school at Northeastern University who follows the airline industry closely. "Either prices must rise by $50 a ticket or massive layoffs and cutbacks are needed."
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