Companies can't agree on terms

It looks like the proposed merger between United and US Airways isn’t going to happen. According to press reports on Friday (May 30), a meeting the previous day between the CEOs of the two airlines failed to produce any progress, and United reportedly told US Airways the deal is off, at least for now. Earlier last week, The New York Times reported that merger discussions between United and US Airways “appear to have fallen apart,” citing sources close to the talks. The newspaper said one source told it that the discussions have been put on “permanent hold” after United’s board started to raise questions about the proposed deal that apparently weren’t answered to their satisfaction by US Airways. The newspaper also said that if the proposed merger were to have any hopes of passing a complete regulatory review while the business-friendly Bush Administration remains in office, a deal should have been announced by Memorial Day. United and US Airways put their merger talks into high gear last month after Continental Airlines said its board had ruled out the possibility of a merger with United.