24 Apr 2010

Airlines end merger talks

7:25 am on 24 April 2010

Merger talks between United Airlines and US Airways have ended in the United States.

Discussions were brought to an end by US Airways, which said its board of directors had decided to discontinue the talks after "careful consideration".

But it still believed consolidation made sense in a "fragmented" airline industry.

UAL also said it thought that the US airline industry could be boosted by consolidation.

The BBC reports the talks were the second round of merger discussions between the companies since 2008.

Shares in US Airways fell afterwards by 3.85% to $US6.50 on the New York Stock Exchange.

However, UAL's shares closed up 1.44% at $US21.74 on the Nasdaq.