Tilton Reportedly Turned Down Parker's Last-Ditch Overture

We now know more of the nature of Thursday's meeting between US Airways CEO Doug Parker, and his counterpart at United Airlines. We also know the outcome of that meeting.

According to The Arizona Republic, Parker traveled to Chicago to appeal to United's Glenn Tilton to keep merger talks alive... but the sales pitch failed in the end. Following three months of talks, Tilton told Parker thanks, but no thanks.

Saying a merger "doesn't make sense for now," United will instead focus its efforts on a possible marketing alliance with Continental Airlines, according to a number of unnamed sources.

As ANN reported, Continental shunned a merger with United earlier this year, saying the nation's second-largest carrier came with too much baggage to deal with. Apparently, that was United's primary argument against a merger with US Airways, as well.

Talks between the two airlines reportedly broke down over labor integration issues, particularly at US Airways... which continues to struggle to hammer out amicable joint contracts following its 2005 merger with America West.

The announcement leaves Parker, and US Airways, with the dubious record of having two proposed mergers fail in as many years. The Tempe-based airline was rebuked by Delta Air Lines in January 2007, after Parker launched a hostile takeover attempt.

Delta apparently liked the idea, if not the partner; the airline has since announced plans to merge with Northwest Airlines, a pairing that would create the world's largest airline.

On Friday, both Tilton and Parker told their respective employees the two carriers may opt to restart merger talks down the line... meaning, alas, we may not have heard the last of a US Airways/United merger.

FMI: www.united.com, www.usairways.com, www.continental.com