United Airlines and US Airways deal off

United Airlines and US Airways have told their staff that a merger of the two carriers will not happen “at this time.”
There has been widespread speculation that the two would
form an alliance, after the recent deal between Delta and
Northwest created the world’s biggest airline.

UA ceo Glenn Tilton said there were ‘issues that could significantly dilute benefits from a transaction. We are evaluating other options, and will do what is
right for United,” he said.

There’s speculation UA may now pursue a deal with Continental.