Analyst: US Airways-United has merit
JEFFERSON GEORGE
jgeorge@charlotteobserver.com

A merger of US Airways and United Airlines has "considerable merit" and would be less complex than a much-rumored merger of United and Continental Airlines, a airline analyst wrote in a research note this week.

United-Continental continues to generate "furious speculation," JPMorgan analyst Jamie Baker wrote Monday, but a deal between United and US Airways could be easier when it comes to aligning the wages of pilots, combining fleets and reducing flights and seats.

In addition, Baker wrote, United and US Airways already have codeshare agreements and are part of the Star Alliance. Baker noted that United was interested in acquiring America West Airlines in 1998 and US Airways in 2000. Neither deal happened, and America West merged with US Airways in 2005.

US Airways' depressed stock price also could provide more benefit for United shareholders than merging with Continental, Baker wrote.