US Airways Backs Out of United Merger Talks

Contributing Editor Carl Unger believes that every trip is worth taking. He loves an extended trip to Europe as much as he enjoys exploring the towns and landscape near home. Basically, you'll find him wherever there is good food, fresh air, and plenty of stories to bring home.

Carl has been writing for SmarterTravel since 2005. His travel writing has also appeared on USA Today and the About.com Boston travel guide.

The Handy Item I Always Pack: "It's not revolutionary, but a small Moleskine notebook is my one travel must-have. It's great for noting things you want to remember and it takes up hardly any space in your bag."

Ultimate Bucket List Experience: "Japan. I'd love to take a month off and visit the cities, temples, and countryside. I'm fascinated by the country's juxtaposition of ancient traditions and modern ambitions."

Travel Motto: “Why do you go away? So that you can come back. So that you can see the place you came from with new eyes and extra colors. And the people there see you differently, too. Coming back to where you started is not the same as never leaving.” –Terry Pratchett

Aisle, Window, or Middle Seat: "Window."

See recent posts by Carl Unger

US Airways announced that it is pulling out of merger talks with United. In a statement, CEO Doug Parker said:

“We have recently held discussions with United Airlines regarding a possible combination between our two airlines. After an extensive review and careful consideration, our Board of Directors has decided to discontinue those discussions.

“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. 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.”

Well, then. This really shouldn’t come as much of a surprise. United and US Airways have done the merger dance several times over the past decade, with each courtship ending in more or less this fashion. And, let’s face it: The death of this merger is probably a good thing for consumers.

Further, word on the street was that the whole thing was just a ploy by United to get Continental to the bargaining table. Now that US Airways is out of the picture, is the door open for Continental? CEO Jeff Smisek was noncommittal today. Which means it’s definitely time to crank up the rampant speculation machine.

Readers, what do you think? Will United and Continental work out a deal?

We hand-pick everything we recommend and select items through testing and reviews. Some products are sent to us free of charge with no incentive to offer a favorable review. We offer our unbiased opinions and do not accept compensation to review products. All items are in stock and prices are accurate at the time of publication. If you buy something through our links, we may earn a commission.