Experts: Air merger talks not getting off ground

Tuesday, 21 Apr, 2005 0

Experts quoted in USAToday say the merger talks between US Airways and America West are not likely to go far.

Some of them blasted the merger talks code-named “Project Barbell.”

“It is not a barbell strategy  –  it’s a  dumbbell strategy,” said Pittsburgh-area analyst Bill Lauer.

The critics said merging the bankrupt US Airways with cash-poor America West would be bad for both carriers.

America West CEO Doug Parker, however, was quoted as saying he thinks the climate is right for this marriage, according to The New York Times.

Both US Airways and America West have made sweeping cost cuts and streamlined their operations, which Parker believes would smooth the path for the carriers to link up.

Report by David Wilkening



 

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