Saturday, April 23, 2005

US Air Confirms Talks with America West

Us Airways has been really close to filling for bankruptcy and is trying to cut costs by outsourcing and having their employees retire early. But now Us Air is talking with South West to merge together and be able to sell ticket on each other flights and share profits. However since 9/11 Us Air has been in the negative and only staying up because they are covering their variable costs. Wall Street does not believe that this merge will see much to no profit because South West's share has been in the negative and their shares were at $4.27 on Friday. If they do happen to merge this will benefit the Marietta market because flights to and from the Parkersburg and Marietta airport will be cheaper. Since South West mainly flies on the western half of the United States, the reason for the merge on their behalf is to have more control in the east. Will this merge help an endangered airline or put both in the dark?

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