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April 26, 2008
Conited Airlines, finally?
The NY Times is reporting that the on-again, off-again merger negotiations between Houston-based Continental Airlines and Chicago-based United Airlines are coming to a conclusion and that a definitive merger deal is likely to be announced by the end of next week.
Continental, the nation's fourth-largest carrier based on traffic, has long been the natural merger partner for United, which is the No. 2 airline. If they strike a deal, the merger would produce the world's largest airline, bigger even than the combined Delta-Northwest and significantly outdistancing American, which is currently No. 1.
Speaking of the Delta-Northwest deal, those partners this week reported an astounding, combined first quarter loss of $10.5 billion, reflecting that the two airlines are now worth far less than when they emerged from bankruptcy a year ago.
Two drunks holding each other up is rarely a good idea. ;^)
Update: The Chron is reporting that Continental's board has decided to reject any merger proposals "at least for now." The NY Times reports that Continental backed off because of United's worse-than-expected first quarter losses.
Posted by Tom at April 26, 2008 12:01 AM
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