US Airways-United deal called dead

— -- US Airways CEO Doug Parker went to Chicago Thursday with hopes of keeping merger talks with United alive. But his sales pitch apparently wasn't enough.

During a lunch meeting, United CEO Glenn Tilton told Parker the Chicago-based airline didn't want to proceed after three months of discussions, according to two people close to the negotiations who spoke on condition of anonymity.

Tilton cited several risks to the potential pairing, including labor opposition, antitrust issues and record fuel prices that have plunged the industry into a financial crisis some believe will top the fallout from the Sept. 11 terrorist attacks.

United "decided it doesn't make sense for now," one of the sources said.

It is the second time in two years the Arizona-based airline's efforts to merge have failed. Last year, Delta and its creditors rejected US Airways' hostile takeover offer.

Delta recently announced plans to merge with Northwest, one factor that prompted the talks between United and US Airways and, earlier, United and Continental.

A combined US Airways and United would have rivaled a married Delta-Northwest for largest airline.

In the wake of the collapsed talks, one of the sources said there is a feeling at US Airways that they were strung along by United.

Labor groups from both airlines will likely cheer the news.

US Airways' pilots and flight attendants said they opposed the second merger when the first, between America West and US Airways, isn't completed.