US Airways announced today that it has discontinued merger talks with United Airlines, according to dpa. US Airways made the announcement in a statement after several months of speculation about a potential merger with UAL Corporation, the parent company of United Airlines. "US Airways has long been a proponent for consolidation in our industry ... 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," US Airways chairman and CEO Doug Parker said. He added 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." Airline analysts said the end of merger talks was a signal that discussions could be intensifying on a tie-up between United Airlines and Continental Airlines Inc, according to Bloomberg news. Continental CEO Jeff Smisek told analysts during a conference call Thursday that Continental would examine all options "and will take whatever action we believe to be in the best interest of our stockholders, customers, employees and the communities we serve."
