UAL Corp.'s plan to buy most of US Airways Group Inc. in what would be the largest airline merger in history was certain to face obstacles. And when the deal was announced formally Wednesday, naysayers swarmed in. The news drew criticism from the powerful pilots union at UAL's United Airlines unit. It raised the hackles of some legislators and consumer advocates. Some Wall Street analysts speculated that such a huge deal could be blocked by antitrust authorities before it set off a competitive chain reaction that would further concentrate the airline industry.
...Speaking from a Metroliner train to Washington from New York late Wednesday, Mr. Goodwin joked that Amtrak "is the only way to fly." In truth, he said, stormy weather forced US Air to cancel a number of flights, which is how the executive found himself taking the train...
...United executives also said privately that routes between some of the assorted hubs of the two companies might have other antitrust problems...
The American Society of Travel Agents, a group that has been pummeled by airlines' commission cuts and increased selling on the Internet, believes that "any reduction in competition among major carriers will hurt our members and consumers," according to Joe Galloway, the president.
PaineWebber Inc.'s Samuel Buttrick said the labor and regulatory hurdles are so great that he won't assign a more than 50% probability that the transaction will be approved.
The 5,000 pilots at US Air aren't "elated," said a spokesman for the Air Line Pilots Association. "We thought they were going to build an airline out of US Airways," he said of current management.
But the leader of the 10,000 United pilots, who together own 25% of UAL and have a seat on the board, said he was "deeply disappointed" that UAL would enter into the transaction without reaching full agreement with the pilots on all issues. Rick Dubinsky said the proposed merger could require "potentially disruptive" negotiations over the integration of US Air pilots into United's pilot-seniority list.
http://public.wsj.com/news/personalE...482848311.html