Management would be roughly split between the sides. Thank you for subscribing. Invalid email address. The merger also needs the backing of employee unions, whose opposition to mergers in the past has undone many of the proposed savings. But adding the traffic from US Airways and its feeder airlines could put the combined airline in the lead in both measures.
How 10 major airlines got down to a 'final four'. The consolidation has meant fewer choices for the nation's fliers, who have only one non-stop choice available to them on about a third of the nation's major routes.
An article on Monday about a merger agreement between United Airlines and Continental Airlines misstated the amount of time it took to negotiate the deal. Tilton, a former oil executive who ran the Texaco Corporation until it was acquired by Chevron. Please upgrade your browser. It also vindicates the work of Kathryn A.
Between them, the airlines operate 6,700 daily flights to 336 destinations in 56 countries. The merger is expected to be completed before the end of the year.
Why airline consolidation was inevitable. All Rights Reserved. Credit markets have also thawed, allowing access to capital. You will receive emails containing news content , updates and promotions from The New York Times. Sign Up.
Tell us what you think. If the deal wins antitrust approval, the merged airline would replace Delta Air Lines as the top carrier.
Smisek of Continental would become the executive chairman. He took over United in 2002 as it was on the verge of bankruptcy, and has since pushed relentlessly for a merger. The earlier talks allowed for swift negotiations this time.
Most stock quote data provided by BATS. Events Guide Television Theater Video: Even with the steep cuts made in the last two years, airlines are still losing money, with too many seats chasing too few passengers. But the three major unions at American pushed for the merger because their members were unhappy with the contract concessions and job cuts that American management was demanding. You may opt-out at any time.