Copyright 2000 Denver Publishing Company
DENVER
ROCKY MOUNTAIN NEWS
October 12, 2000, Thursday
Correction Appended
SECTION: Business; Ed. Final;
Pg. 4B
LENGTH: 305 words
HEADLINE: SHAREHOLDERS SURE TO OK UNITED DEAL
US
AIRWAYS VOTE ON MERGER IS TODAY
BYLINE: By Heather
Draper, News Staff Writer
BODY:
STOCK WATCH
UAL Corp., (UAL: NYSE)
$39.88, down 1.19.
US Airways Group, (U: NYSE)
$31.38, down $1.
To shareholders
of US Airways, their vote today on United Airlines' proposal to buy their
company is a no-brainer. They've been offered $60 a share on
stock that closed at just above $31 a share Wednesday.
But to air travelers, the vote could be a step toward less competition
and higher prices, airline analysts said.
"Shareholders aren't the
issue. It's going to get approved. But it's a bad deal for consumers, regardless
of what United tells you," said Mike Boyd, president of The Boyd Group of
aviation consultants in Evergreen. "Cutting down a major carrier like US Airways
means we lose that competition."
Boyd said the merger would hurt Denver
more than other parts of the United States, especially smaller cities on the
East Coast now served by both airlines.
The companies announced United's
proposed $11.6 billion deal May 24.
United CEO James
Goodwin has extolled the virtues of "single-carrier, hassle-free service" when
the airlines merge.
Outspoken merger critic Kevin Mitchell, president of
the Business Travel Coalition, said, "Once the industry is collapsed into three
major carriers (United, American and Delta), new entrants won't stand a chance
of getting started.
"If this goes through, it will make last summer look
like a day at Nordstrom."
Analysts will be closely watching the U.S.
Department of Justice, whose approval is needed for the merger. Boyd said it's a
toss-up whether the merger will get the government's consent.
"They'll
go whichever way the political wind pushes them," Boyd said, adding that he
thinks United and US Airways have "done a good job covering their political
bases with this one."
CORRECTION-DATE:
OCTOBER 14, 2000
CORRECTION:
Contact Heather Draper
at (303) 892-5456 or draperh@RockyMountainNews. com.
A story on Page 4B
Thursday should have said that aviation consultant Mike Boyd predicted the
merger of United Airlines and US Airways would hurt Denver less
than it would other parts of the United States.
LOAD-DATE: October 16, 2000
