Continental Abandons Merger Talks With United

New York Times:

Continental Airlines said Sunday that it had abandoned merger talks with United Airlines and was planning to remain an independent carrier, a blow to lengthy efforts by United to find a merger partner.

Continental's decision, announced by the airline Sunday afternoon, will change the complex game of musical chairs that the airline industry is playing after the merger announcement last week by Delta Air Lines and Northwest Airlines.

Continental's move was a stunning development for United's parent, UAL, which had been negotiating in expectation of reaching a deal by late this week. As recently as Friday, it looked as though Continental, based in Houston, and United, based outside Chicago, were on the way to reaching a merger agreement.

Continental decided to drop the discussions after UAL announced worse-than-expected earnings, which sent shares falling last week. On Tuesday, United said it lost $357 million during the first quarter, on sharply higher costs for jet fuel. The airline, which spent more than three years under bankruptcy protection earlier this decade, said it would cut flights and eliminate a further 1,000 jobs.

Read the whole story: New York Times

Comments

[WIpatriot]

Oh, Continental, you big tease....

[ruleoflaw66]

And i only came here because I thought they were talking about Mr. Continental!

[Amennyc]

Thank God! To be associated with United would be a nightmare. One of the tackiest worst run airlines out there. These people should travel on airplanes run my Asian or Middle Eastern countries to get a clue on what service and performance is all about. And of course, flight attendants who actually care about the customer and don't look like they just rolled out of bed.