United Airlines open to merger idea: Report
26 November 2007
UAL Corporation, the parent company of United Airlines, remains open to the idea of a merger with another carrier, accord to a BusinessWeek report.
United Airlines has one of the thinnest profit margins in the industry, and has been exploring asset sales as well as spinning off Mileage Plus, its frequent-flier programme.
United is on record as saying it plans to rely on its existing fleet of 460 aircraft until 2015 or 2016. This comes at a time when rival airlines have been busy placing orders for new aircraft.
There has been talk of a merger with Delta Air Lines, with some shareholders reportedly pressing the issue (See previous report), but Delta negated any talk about doing a deal with UAL earlier this month.
Investors and analysts however, continue to think that Delta is the most logical choice for United Airlines, followed by US Air.