UAL chief: Airlines must consolidate to survive

BOSTON -- The head of United Airlines' parent company said Tuesday he no longer feels like a voice in the wilderness in arguing airlines must consider consolidation to withstand competitive challenges, including rising fuel costs.

"We at United have been talking about this for the past three to four years, and there's been very little company among us," UAL Corp.'s Glenn Tilton told reporters after delivering a speech to business leaders at the Boston College Chief Executives Club.

"Now, we have virtually everybody saying the same thing," Tilton said, noting several rival airline CEOs suggested on third-quarter conference calls that the time may be right for industry mergers and acquisitions.

United has been the focus of recent industry merger rumors, including the possibility of pairing with Delta Air Lines Inc.

Tilton, chairman, president and chief executive of Chicago-based UAL, wouldn't say whether he or other United executives have been in any talks with Delta or other potential partners. He said he understood the rationale for a United-Delta pairing, but he declined to say whether it would be a good fit.

Tilton's speech Tuesday focused on the need for greater investment to improve U.S. aviation infrastructure, including air traffic control. He said obsolete aviation systems and outmoded industry thinking jeopardize the U.S. airline industry's health.