As rumors continued to swirl regarding merger talks between United Airlines and US Airways, Wall Street showed its approval and analysts touted the benefits of such a deal. Experts believe the two carriers are better positioned to win approval from regulators and unions than they were a decade ago, and many within the industry have long argued that consolidation is the key to profitability. One analyst estimates that the airlines could raise salaries by 10% and still save more than $1 billion in annual expenses. Another sees no competitive harm to consumers, since the two airlines combined will be 28% smaller than United was on its own in 2000.
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