Airline Merger on the Radar Screen for a Long Time

The emails from readers and moles close to the action started about 4 p.m. EST Tuesday. Had I heard about the meetings scheduled with the powers-that-be and upper management? Had I heard about what was being discussed? Then, just as quickly, the notes turned to, "Holly, it's a deal -- United parent UAL (UAL Quote) and US Airways (U Quote) are going to merge."

Not a surprise. At all.

As we said here a long time ago, US Airways had a major problem on its hands. It is basically a high-cost commuter airline on the East Coast, with no transcontinental routes to support such an operation. ...