An unnamed source has told Reuters that American Airlines is in talks with US Airways about a possible merger—and that it’s also in talks with Continental about sharing passengers! Meanwhile, Continental is currently in talks with United about a possible merger of its own, and has said it will only choose one partner eventually. United, on the other hand, is not only pursuing Continental but is also in talks with US Airways about a merger. Yes, we have an airlines romantic triangle, folks. Someone’s heart is going to end up broken.
So where will all this drama end? We figure by the end of the season, US Airways will be merging with someone in a cute wedding chapel, but then a bunch of men will run in firing machine guns and we won’t know who lived and who died until the fall!
Combining United with Continental would create a company with a combined $35 billion in revenue and nearly 100,000 employees, surpassing the Delta-Northwest combination as the world’s largest airline.
But that merger may not happen. United Airlines, whose shares plunged 40 percent when it reported a quarterly loss earlier this week, is also talking to US Airways.
Analysts have said a merger between those two carriers would be less complex than one between United and Continental Airlines.
JP Morgan analyst Jamie Baker earlier this week said a deal between United and US Airways could be easier when it comes to aligning the wages of pilots, combining fleets and reducing flights and seats.
“American Airlines in talks with Continental, US Air” [Reuters]