The chief executives of United Airlines and US Airways are scheduled to meet Thursday to try to make progress on labor, financing, seating-capacity cuts and other issues that have slowed work on a potential merger, according to people briefed .
The attempted pairing, which would create the world's largest carrier, faces numerous hurdles but is still possible.
Glenn Tilton, the chief executive of United parent UAL Corp., and US Airways CEO Doug Parker were scheduled to meet at an undisclosed location to discuss the complications and how to resolve them.
There is still key opposition to the deal within Chicago-based United, despite management's long-time push for consolidation. Sources told the Tribune on Tuesday that United's board had put the merger talks on the back burner, although it did not completely rule out a deal.
A key sticking point is labor complications that could delay any cost savings. US Airways still has not reached agreements with all of its unions following its 2005 combination with America West Airlines. There are also questions about whether the two carriers would be able to attract the capital needed to help cover integration costs and bolster their balance sheets.
Jean Medina, a spokeswoman for United, and US Airways spokeswoman Andrea Rader declined to comment about the discussions between Tilton, 60, and Parker, 47. |
