Delta, United deny merger talks
Delta Air Lines Inc. is looking for a partner, but it isn’t United Airlines.
The U.S.’ third-largest carrier said Wednesday that it had had no discussions with No. 2 United about a merger that would create the nation’s largest airline, dismissing a report that talks had been going on for some time.
But Atlanta-based Delta did not rule out a merger with another airline. With a fresh balance sheet after emerging from bankruptcy reorganization last spring, Delta has said it would rather buy than be acquired.
“There have been no talks with United regarding any type of consolidation transaction and there are no such ongoing discussions,” Delta Chief Executive Richard Anderson said in a statement.
The Associated Press report, quoting an unnamed executive, said that the two carriers had talked as recently as a week before about a possible merger and that there was a “sense of urgency” to the talks.
It described one scenario in which the combined carrier would keep the United name and be headquartered in Chicago, home of United parent UAL Corp., with Delta’s Anderson as CEO of the merged company.
United is the largest carrier at Los Angeles International Airport. Delta, the third-largest, has been beefing up flights at LAX.
“We do not respond to wholly inaccurate statements made by people who claim to have knowledge when they clearly do not,” said Jean Medina, a United spokeswoman.
Earlier Wednesday, Delta had issued a statement saying it had formed a committee to “review and analyze strategic options.”
It was in response to a letter it had received from a hedge fund that owns 7 million Delta shares. The fund, Pardus Capital Management, urged Delta to consider a merger with another airline in light of soaring fuel prices.
“We appreciate receiving Pardus’ views on the best course for Delta’s future,” Anderson said, adding that the airline “believes that the right consolidation transaction could generate significant value for our shareholders and employees.”
