Skip navigation
Watchlist Sponsored By :


Current DateTime: 12:27:14 01 Dec 2009
LinksList Documentid: 24355697
  • The Cost of True Love

      In the popular holiday song "The 12 Days of Christmas," the cost of gifts - from the 12 drummers drumming to a partridge in a pear tree - is quite pricey.

  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

FEATURED QUIZZES


Current DateTime: 12:27:13 01 Dec 2009
LinksList Documentid: 33793611
  • Test Your Google IQ

      How much do you know about the most popular search engine in the world? Take the following quiz and find out.

  • How Well Do You Know Your Bird?

      Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.

  • A Healthier & Wealthier You

      Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.


Current DateTime: 12:27:14 01 Dec 2009
LinksList Documentid: 24890560
  • Holiday Central

      There are plenty of reasons to believe that this Christmas holiday season will not be as bad for retailers as last year.

  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

powered by digg
By: Associated Press | 14 May 2008 | 10:12 PM ET
Text Size

United Airlines and Continental Airlines are talking about forming an alliance to gain some benefits of working together without going through a merger, which Continental rejected last month, a person close to the talks said Wednesday. 

United is still pushing ahead with negotiations aimed at a combination with US Airways Group but wouldn't pursue both deals, said the person, who wasn't authorized to speak about the matter and requested anonymity. 

United Airlines
Jacquelyn Martin / AP
United Airlines

United, the nation's second-largest carrier, is expected to take up the matter Thursday at a meeting of parent UAL Corp.'s [UAUA  Loading...      ()   ] board of directors. 

No vote is expected, and the person close to the talks said a decision isn't imminent on which of three options currently under consolidation United will pursue: consolidating with US Airways [CAL  Loading...      ()   ], forming an alliance with Continental [LCC  Loading...      ()   ], or 
remaining a stand-alone carrier.

Chicago-based United had been close to combining forces with Continental until the Houston-based carrier said April 27 that it would not seek a merger.  But Continental left the door open to an alliance with another carrier. 

"As we've said over the last few weeks, we are examining our alliance relationships as we think it's important that we be a major player in one of the three major global airlines alliances," Continental spokeswoman Mary Clark said.

United spokeswoman Jean Medina declined comment. 

An alliance, in which the companies would work together in many ways but not merge their operations, would provide a way for them to raise more revenue without the integration problems that come with formal consolidation. It could set pricing and schedules and have U.S. antitrust immunity. 

Mergers also can be highly disruptive, costly and risky for airlines. US Airways is still operating basically as two airlines more than two years after combining with America West because of disagreements between unions. 

Continental is also still in discussions about an alliance with AMR's [AMR  Loading...      ()   ]American Airlines and British Airways, said an official with knowledge of those talks. That person also wasn't authorized to discuss the matter and requested anonymity. 

The official said it wouldn't be unusual for Continental to be considering alternatives, but that the British Airways-Continental-American talks are progressing and don't appear in jeopardy. British Airways publicly disclosed the talks April 30. 

Bob Mann, an independent airline consultant based in Port Washington, N.Y., said he doesn't think an alliance between United and Continental is likely because it wouldn't go far enough to solve the carriers' cost and capacity issues. 

"The United guys are very much heading in the direction of something that will really allow them to downsize the airline," he said. "We're talking about large capacity cuts ... The alliance doesn't get to the point where you can really do the capacity-cutting." 

The airlines are under more competitive pressure in the wake of Delta Air Lines'[DAL  Loading...      ()   ] pending deal to acquire Northwest Airlines [NWA  Loading...      ()   ]

Combining United and US Airways would create a carrier rivaling the Delta-Northwest tandem for the title of world's largest airline. 

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Ever wished your cab driver would stop chatting and just get to where you're going? Well, that moment is closer than ever.
  • UPS truck
  • UPS is giving its customers the option to offset its carbon emissions when sending a package.
  • Romania's presidential campaign has been rocked by a video that may show the president striking a 10-year-old boy.
  • alligator
  • Raising alligators is hard work, and the fickle taste of rich consumers has just made it much harder, says the NY Times.
  • A recent issue of ESPN Magazine was one of its top sellers ever, and it only took scantily clad athletes to make it happen.
  • The continued real estate boom in China is partially fueled by a generational flood of newlyweds.
ADD COMMENTS
Remaining characters


Current DateTime: 10:03:18 30 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 10:01:26 30 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 10:01:53 30 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 10:01:53 30 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters