GOOD DAY FOR: Merger lite, after United Airlines reportedly called off merger talks with US Airways, amid disagreement over labor costs, and is instead again in talks with Continental Airlines. United’s new proposal is for an alliance, not a merger, with Continental. That would give United access to Continental’s international routes without regulatory oversight or workforce combination issues. (Bloomberg)
BAD DAY FOR: A party in Detroit, after Ford reportedly has decided to build its new subcompact Fiesta in Mexico rather than the U.S. Ford has sold 12 million Fiestas since the car’s launch in 1976, but it was only sold in the U.S. from 1978 to 1980. The Mexican-made Fiestas should be on sale in the U.S. starting in 2010. (AP in BusinessWeek.com)
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