CHICAGO - 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 make money with oil prices near $130 a barrel.
"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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