United and Continental on the verge of formalizing their union
Continental Airlines and United Airlines are about to happen in the ring finger. According to CNBC, a merger agreement between the two U.S. airlines could be signed next Monday.
According to the Thursday edition of The Wall Street Journal, "the Board of Directors of Continental met Wednesday and has scheduled another meeting on Friday (the day, Ed)" with United, citing sources familiar with the matter.
Two years after failing in their negotiations – the two groups did not agree because of unions and integration costs – United and Continental, whose bosses have always wanted to participate in the movement of Contraction sector, would now be on the same wavelength.
These last two weeks, the talks resumed but opinions differed on how the modality of trade action.
U.S. leadership to
This union intervendrait and only one week after the breakdown of negotiations between U.S. Airways and United Airlines. If the proposed merger between Continental and United Airlines led the new group would become the U.S. leader in the sector, ahead of Delta Airlines, with a market capitalization of over $ 6 billion.
It remains to be seen whether the authority will accept American competition this marriage Guaranteed unsecured personal loan. For who says merger often said job cuts and higher fares.What politically wrong.
A refusal has been lived to its reasons for U.S. Airways and United Airlines, almost 10 years ago, when they had proposed a reconciliation.
A need for synergies
While the sector has experienced in 2009 "the worst year's ever known industry, concentration is a single best way to achieve synergies and economies of scale.
The North American companies have suffered a loss of 3.1 billion dollars last year, according to the International Air Transport Association (IATA).
For 2010, although the estimates have been reported by IATA, the performance accrue largely to companies in emerging countries (Asia and South America), while companies in North America and Europe still would suffer heavy losses, the about 1.8 billion dollars for the former and 2.2 billion for the latter.
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