AP source: United, Continental in alliance talks
United Airlines and Continental Airlines Inc. are talking about forming an alliance to gain some benefits of working together without going through a merger. United is still pushing ahead with negotiations aimed at a combination with US Airways Group Inc. but would not pursue both deals.
Continental is also still in discussions about an alliance with AMR Corp.'s American Airlines and British Airways, said an official with knowledge of those talks. That person also was not authorized to discuss the matter and requested anonymity.
The official said it would not be unusual for Continental to be considering alternatives, but that the British Airways-Continental-American talks are progressing and don't appear in jeopardy. British Airways publicly disclosed the talks April 30.
Bob Mann, an independent airline consultant based in Port Washington, N.Y., said he doesn't think an alliance between United and Continental is likely because it wouldn't go far enough to solve the carriers' cost and capacity issues.
"The United guys are very much heading in the direction of something that will really allow them to downsize the airline," he said. "We're talking about large capacity cuts. ... The alliance doesn't get to the point where you can really do the capacity-cutting."
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USA320Pilot comments: United's website indicates the company has 55,321 employees and 460 aircraft. US Airways' website indicates the company has 36,000 employees and 355 aircraft. The United employee to aircraft ratio is 120 employees per aircraft and the US Airways employee to aircraft ratio is 101 employees per aircraft.
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