United Airlines and US Airways end merger talks
US Airways has confirmed that the board of directors will discontinue talks with United Airlines. Both companies agreed that the US airline industry would benefit from consolidation, but they will not be consolidating with each other. This was the second round of talks between these two airlines since 2008.
The airline industry has been hit particularly hard by global recession and rising fuel prices.
Also, the volcanic eruption in Iceland that grounded flights all over Europe put a significant dent in the airline industry.