US Airways Statement Regarding Merger Discussions
US Airways Group, Inc. (NYSE: LCC) today announced that it has discontinued recent discussions with UAL Corporation (NASDAQ: UAUA) regarding a potential merger between the two companies.
“We have recently held discussions with United Airlines regarding a possible combination between our two airlines. After an extensive review and careful consideration, our Board of Directors has decided to discontinue those discussions.”
US Airways Chairman and CEO Doug Parker issued the following statement:
“US Airways has long been a proponent for consolidation in our industry. As opportunities have arisen for our company to participate in consolidation, we have taken a close and careful look at our options, always with an eye on what is in the best interests of our shareholders, customers, employees and the communities we serve.
“We have recently held discussions with United Airlines regarding a possible combination between our two airlines. After an extensive review and careful consideration, our Board of Directors has decided to discontinue those discussions.
“While it is our policy not to comment on rumors concerning strategic transactions, because of the persistent rumors about a possible transaction with United Airlines we believe it is appropriate to clarify the status of those negotiations. In the future, we will continue to follow our policy of not commenting on potential strategic transactions until we have entered into a definitive agreement with respect to a specific transaction.
“It remains our belief that consolidation makes sense in an industry as fragmented as ours. Whether we participate or not, consolidation that leads to a more efficient industry better able to withstand economic volatility, global competition and the cyclical nature of our industry is a positive outcome.
“The US Airways team is doing an outstanding job of running a reliable airline, taking care of our customers and keeping our costs down. We are well along the road to near-term profitability and are well-positioned for sustainable, long-term success. As the industry becomes less fragmented and more stable, everyone will benefit.”
