Continental Airlines called off talks with United Airlines parent UAL Corp., saying it wouldn't merge with any carrier at this time, U.S. media reported Monday.
Continental's decision came after U.S. rivals Delta Air Lines and Northwest Airlines announced 10.5 billion U.S. dollars in losses, just eight days after the pair announced plans to join and become the world's biggest airline.
"Our board of directors met today and has unanimously supported management's recommendation that, in the current industry environment, the best course for Continental is to not merge with another airline at this time," Continental chief executive Larry Kellner said in a statement on Sunday afternoon.
Continental Airlines called off talks with United Airlines parent UAL Corp., saying it wouldn't merge with any carrier at this time, U.S. media reported Monday. (File Photo) "The risks of a merger at this time outweigh the potential rewards, as compared to Continental's prospects on a stand-alone basis," Kellner added.
But, Continental said it would keep its options open in order to remain competitive.
Delta Air Lines Chief Executive Officer Richard Anderson (2nd -L) speaks as Delta Executive Vice President Mike Campbell, (L) Northwest Airlines President and Chief Executive Officer Doug Steenland and Delta CFO Edward Bastian (R) listen during a news conference announcing the merger of the two Airlines in New York, April 15, 2008. (Xinhua/Reuters Photo) "We will, however, continue to review potential alliances," Kellner said.
As U.S. media reported, Continental is expected to press ahead with preliminary talks to create a three-way alliance — short of a full merger — with American Airlines and British Airways.
Apparently, Continental’s move was a stunning development for UAL, which had been negotiating in expectation of reaching a deal by late this week.
However, the company will still stick to a merge as United Airlines Chief Executive Glenn Tilton said the company's strategy was consistent.
"Consolidation is underway - ensuring you have the right partner is everything," Tilton said. "We will pursue all options to ensure a strong, sustainable future for our airline."
According to a Reuters report, earlier this month UAL was also in serious merger talks with U.S. Airways.
Source: Xinhua/Agencies
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