Article Abstract:
United Air Lines Inc has suffered a setback in its $4.3 billion attempt to merge with US Airways Inc after the release of a United States General Accounting Office (GAO) report that branded the merger as harmful to competition. The GAO report stated that the merger will either lessen or eliminate competition in 290 markets in the country. The report also revealed that the reduction and elimination of competition will hasten the consolidation of the industry, which will not be healthy for consumers.
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Article Abstract:
United Air Lines Inc's $4.3-billion proposed purchase of US Airways Inc was successfully kept a secret until its announcement on May 24, 2000, at the Waldorf-Astoria. The world's biggest airline combination was personally handled by United Chmn James Goodwin and US Airways Chmn Stephen Wolf, who decided to use code names as some point in the negotiations in an effort to enhance the secrecy of the deal. The agreement was also kept secret from most of each firm's management teams.
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Article Abstract:
United Air Lines Inc and Deutsche Lufthansa AG teamed up to help Air Canada counter a hostile takeover bid as they offer $489 million for the Canadian carrier. The acquisition plan would keep Air Canada in the Star Alliance, which is led by United and Lufthansa. Earlier, Air Canada was offered $1.2 million by Onex and AMR Corp in a plan that would merge the carrier with Canadian Airlines.
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