United, US Airways end merger attempt for now

5/31/2008

CHICAGO United Airlines scrapped its latest attempt to combine with US Airways and create the world s largest carrier, formally backing away yesterday from a deal that likely would have meant fewer routes and higher ticket prices.

The chief executives of the two airlines told their employees in separate messages that a combination was off for now, although US Airways Doug Parker indicated it is unlikely for at least the rest of this year.

They had spent months exploring a deal that likely would have pared employees, trimmed overlapping operations, and eliminated competing flights.