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US Airways Ends Talks With UnitedApril 22, 2010 By: George Dooley
Despite its belief in the value of consolidation for the airline industry, US Airways Group, Inc. reports it has discontinued recent discussions with UAL Corporation regarding a potential merger between the two companies. Admitting discussions with United, US Airways said no to the move and that it is well positioned for long-term sustainable growth.
"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," US Airways Chairman and CEO Doug Parker said. "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," Parker continued. "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," Parker said.