United Airlines looking for mergers?

According to a story from Crain's Chicago Business, United Air Lines, Inc (NASDAQ: UAUA) retained Goldman Sachs to explore "strategic options." This is the code phrase for merger. On the news, United Airlines' stock increased $0.99 to $28.81.

Who might combine with United Airlines? Well, there are two possibilities: Continental Airlines and Delta Air Lines. In fact, United Airlines' CEO is no stranger to mega deals. After all, he orchestrated to the Chevron-Texaco link-up.

With plunging energy prices this is certainly a good time to get a deal done. Interestingly enough, United Airlines may use the huge amounts of money from private equity firms, as well. Moreover, a deal from United Airlines would likely spur other deals in the sector. But this will take time. The airline industry is heavily regulated, there are unions to deal with, and United Airlines recently emerged from bankruptcy.

But, ultimately, the dealmaking should be good news for shareholders of airlines. But, as for ticket fares, it's probably a good bet to not expect any relief.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.