United Airlines and US Airways said that once again they are discussing a merger, although it probably be weeks before one is announced and it is far from a done deal. The talks are the latest in the money-losing aviation industry’s efforts to consolidate in order to speed its return to profitability. Although the picture for the industry is brightening the International Air Transport said last month that the industry would lose $2.8 billion this year instead of the $5.6 billion it had originally forecast airlines clearly are still struggling.
United has long been looking for a partner. This is the third time it has flirted with merging with US Airways. In 2008 it courted Continental Airlines, but nothing materialized. Union agreements can make the road to a successful marriage a rocky one. US Airways has yet to integrate pilot seniority since it merged with America West five years ago. One reason the Delta-Northwest merger went through relatively quickly was because the two carriers successfully negotiated new seniority and collective bargaining agreements with pilots. For more information, visit www.united.com or www.usairways.com.
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