World Economy

Apr 27, 2008

American talks with Continental Airlines and U.S. Airwaysr

American talks with Continental Airlines and U.S. Airways



The U.S. airline American Airlines has conducted preliminary discussions for a merger with his counterpart and U.S. Airways also has advanced discussions to form an alliance with Continental Airlines, said sources familiar with the situation.

The discussions with American Airlines Continental focus on an alliance that could go through sharing agreements passengers, in the style of the SkyTeam alliance that brings together including Air France, Delta Air Lines and Northwest Airlines.

United Airlines is also at the same time in advanced discussions over a merger with U.S. Airways and will choose soon between the latter and Continental, have added to these sources, which state that all these talks have taken place since January, when discussions between Delta and Northwest have become serious.

Delta and Northwest have just announced their proposed merger, in an operation while shares.

Continental is also in advanced discussions with United Airlines for a merger also in action, according to the same sources, adding that the CEO of Continental, Larry Kelner, could be the new package and that of United, Glenn Tilton, chairman of the board of the merged entity. The operation would also be carried out while shares.

United and Continental together form the first global airline, ahead of Delta-Northwest, with 35 billion dollars in turnover and nearly 100,000 employees.

A UNITED ALLIANCE / U.S. AIRWAYS LESS COMPLEX

Some analysts have held that a merger between United and U.S. Airways would be less complex as a combination United / Continental.

Jamie Baker, an analyst at JP Morgan, said recently that an agreement United / US Airways could be easier to align the salaries of pilots of both companies and combine their fleets.

He also recalled that the two groups were already part of the same alliance, Star Alliance.

All airlines concerned have refused to comment on the case.

The U.S. airlines, which face increases of kerosene and an economic slowdown in the USA, rely on a consolidation of the sector to be better able to reduce their costs.

by erectusplus at 8:00 AM |