United Airlines, US Airways in merger talks

NEW YORK, April 7 (Xinhua) -- The UAL Corporation, the parent of United Airlines, and US Airways are in talks to merge, in a potential deal that would create one of the world's largest airlines, said The New York Times on Wednesday.

United and US Airways are deep in their merger discussions, though a transaction is not expected to be announced for at least several weeks, the report said.

The talks may still collapse, it added. One potential hurdle could be union opposition.

The Chicago-based UAL Corporation reported a fourth quarter net loss of 176 million U.S. dollars in January, narrowing its net loss by 391 million dollars compared with the fourth quarter of 2008.

Consolidated passenger revenue per available seat mile for the fourth quarter declined 5.2 percent year-over-year, a significant sequential improvement compared with the 14.7 percent year-over- year decline in the third quarter of 2009.

US Airways Group, Inc., which based in Tempe, Arizona, said it lost 32 million dollars for the fourth quarter 2009. For the full year of 2009, the company reported a net loss of 499 million dollars.

The negotiations mark the latest efforts to consolidate the struggling airline industry, said The New York Times.

Both companies have been vocal in calling for greater consolidation within the industry to help prop up falling revenues, with United's chief executive, Glenn F. Tilton, among the leading proponents for more mergers.