29-Apr-2010 12:53 PM

US Airways states UA-CO merger won't spark wave of consolidations

US Airways CEO, Doug Parker, stated a potential merger of United Airlines and Continental Airlines would not necessarily spark a wave of consolidation, commenting, "I don't think it comes in waves. I think it comes one transaction at a time over a long period of time". (Reuters, 28-Apr-2010). Mr Parker commented that "it appears our talks with United may have helped motivate Continental to finally merge with United" (Bloomberg, 28-Apr-2010). US Airways ended discussions on a possible combination with United on 22-Apr-2010. The two carriers were reportedly within days of announcing an agreement before the United-Continental talks were disclosed on 15-Apr-2010.

US Airways: "We believe consolidation is good for the industry. We further believe that if indeed United and Continental does happen, it's good for US Airways. If the industry gets stronger through consolidation, that just makes the stand-alone plans stronger," Doug Parker, CEO. Source: Reuters, 28-Apr-2010.