US Airways and United Airlines will not merge at this time, the carriers' CEOs said today.
In a letter to employees, US Airways CEO Doug Parker, said a "consolidation involving US Airways will not occur at this time." The decision had been made after "much work and many conversations with other airlines," he said.
"This is not to say that something won't occur in the future—as you know, I strongly believe that consolidation is required in our industry and that US Airways would benefit from participating," Parker said. "Rather it is simply unlikely that anything will happen in 2008 as our industry continues to struggle with how to function in a world with $130 per barrel oil prices."
In a message to employees, United Airlines CEO Glenn Tilton said United would not merge at this point due to "issues that could significantly dilute benefits from a transaction," according to Reuters.
After the announcement of a merger between Delta Air Lines and Northwest Airlines last month
(BTNonline, April 15), speculation had surrounded a possible merger between Continental Airlines and United. Continental announced late last month that the carrier would not merge with another airline
(BTNonline, April 28).