United-Delta talking merger?

[T_R_Oglodyte]

Official: United, Delta Mull Combination

Official Says United and Delta Have Discussed Combining; Airlines Deny It

ATLANTA (AP) -- United Airlines and Delta Air Lines have been discussing a combination between the nation's second- and third-largest carriers that would keep the United name and the corporate headquarters in Chicago, according to an official with knowledge of the talks.

The reported talks come as all airline executives are wrestling with the implication of oil prices hovering close to $100 a barrel. That has sharply boosted jet fuel expenses -- and accelerated a search for ways to cut costs, which typically are the result of airline takoevers.

Earlier Wednesday, Delta said its board established a special committee to work with management to review and analyze strategic options for the airline. Top executives have said recently they are trying to determine whether consolidation makes sense for Delta.

Delta issued a statement denying "published reports that it had engaged in merger talk with United." CEO Richard Anderson was quoted as saying, "There have been no talks with United regarding any type of consolidation transaction and there are no such ongoing discussions."

United called the report of recent talks "wholly inaccurate."

The Wall Street Journal's online edition, citing unidentified people, reported Wednesday that Anderson has informally talked about consolidation possibilities with counterparts at other airlines, including senior executives at United and Northwest Airlines.

Then-Delta CEO Gerald Grinstein said during a stop in New York on Oct. 12, 2006, that he had previously received "feelers" from United about a possible merger.

There is a sense of urgency in the most recent talks, which have been going on for some time and continued as recently as a week or so ago, the official with knowledge of the talks said Wednesday. The official spoke on condition of anonymity because the person was not authorized to speak publicly. The official stood by the assertions about the talks after learning of the statements by Delta Air Lines Inc. and United, a unit of UAL Corp.

"They want to get something done before a new administration gets in and so they get the clock ticking on" federal regulatory approval, the official said.

[falmouth3]

The price of United had been up over $5 a share and now it's come nearly all the way back. I guess some of the excitement cooled.

Sue

[Icarus]

Hedge Fund Seeks Delta-United Deal

http://www.nytimes.com/2007/11/14/bu...=1&oref=slogin

[x3 skier]

More agitation for something that is as likely to happen as Al Gore deciding that Global Warming is not real. Of course there is a finite possibility that either or both will happen.

Cheers

[Carolinian]

If you read Flyer Talk, there are constantly rumors of merger talks between various combinations of airlines, often based on inside info from highly placed sources. A DL/NW combination has been much talked about lately. I'll believe any of them when they happen.

What they must be looking over their shoulders at, however, is that Branson's Virgin America is now flying, and Ryan Air, a leading European LCC is not only making plans for trans-Atlantic LCC flights but also working on a domestic US airline as well. Competing again people like Branson and Ryan Air will make Southwest seem like a minor irritant.