Continental calls off merger talks with United

Continental has called off merger talks with United Airlines.

In a letter to employees, Larry Kellner, chairman and chief executive officer, and Jeff Smisek, president, said the company's board of directors met Sunday and unanimously supported management's recommendation that, in the current industry environment, the best course for Continental is to not merge with another airline at this time.

They said they believe the risks of a merger at this time outweigh the potential rewards, as compared to Continental's prospects on a standalone basis.

However, there are press reports the Continental is also speaking to British Airways and American Airlines about a possible alliance.

Glenn Tilton, United's CEO, said, Our strategy is consistent. Consolidation is underway -- ensuring you have the right partner is everything. We will pursue all options to ensure a strong, sustainable future for our airline and will not shy away from the tough choices necessary to create value for our shareholders and benefit our employees and customers.

Source: American Shipper