Reports are that the heated merger talks between United (NASDAQ: UAUA) and US Air (NYSE: LCC) have hit a wall. Both airlines are probably still talking to AMR (NYSE: AMR), Continental (NYSE: CAL), and any puddle-jumper with a single-engine plane that they can find.
The airline industry got another dose of electric-shock therapy yesterday when JetBlue (NASDAQ: JBLU) said it would defer delivery on a number of new Airbus jets. Of course, if the airline doesn't make it, the delivery could be dodged altogether.
Managers at United and US Air have probably decided that thousand of hours talking about mergers will not save them. With oil at $130, putting together two airlines is not unlike lashing two drowning men to a leaky raft. Neither will be lonely, but both will still die.
