usairways – a valuable candidate for mergers

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usairways

Recently, as you may remember, Continental Airlines’ CEO Jeff Smisek called US Airways an “ugly girl” after it refused to accept Continental Airlines’ proposal to merge together.

However, US Airways has been doing really well these days. Its shares rose 8.2% and closed on $8.45 last Wednesday. According to analysts, at this moment, US Airways is a very attractive candidate for mergers. Also, a merger with American Airlines will be very beneficial to American Airlines especially in the Atlantic.

If American Airlines were to merge with US Airways, it would have operations in 63 new cities where it did not operate before. Needless to say, this merger can be very valuable for American Airlines.

Whether they would merge or not, only time would tell.

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Posted by admin   @   30 May 2010 1 comments

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