United merger in doubt

Article Abstract:

United Air Lines Inc's $4.3-billion offer for US Airways Inc is threatened by signs that the Dept of Justice antitrust staff opposes parts of the merger, according to sources familiar with the department's reviews. Sources say the main obstacle is that United and American Airlines Inc would dominate the heavily traveled East Coast. The merger plan requires American to acquire part of US Airways, which is the leading carrier in the East Coast.

Asset sales & divestitures, US Airways Inc.

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States may challenge air merger

Article Abstract:

At least 20 state attorneys have expressed strong opposition over the proposed merger of United Air Lines Inc and US Airways Inc. The attorneys group challenge the planned consolidation because this may result in reduced air service and higher fares in the states the two airlines service. To back up their case, state attorneys are gathering local data and will review the airlines' merger plan as soon as it is released.

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Wide impact likely from pilots' deal

Article Abstract:

The huge pay increases that will be given to United Airlines pilots are expected to increase costs in the airline industry as other airline unions are expected to ask for better deals. Moves to equal or surpass the United deal could result in new labor disputes, higher fares and lower profits to pay for more expensive contracts. The contract, if approved, would give United pilots pay increases of 45% over four years.

Personnel administration

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