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
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
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