Sunday, April 27, 2008

United Airlines Nearing Decision on Potential Merger Partner


Less than two weeks after Delta Air Lines and Northwest Airlines unveiled their plan to merge, United Airlines parent UAL is nearing a decision about its potential merger partner. The deliberations come as talks are heating up among carriers worried about being marginalized if they don't combine in a deteriorating industry climate.

UAL, which already has had detailed merger talks for at least a month with US Airways Group, recently embarked on parallel discussions with Continental Airlines, according to people familiar with those situations. United wants to come to a decision about its preferred outcome in the next couple of weeks and a deal announcement by mid-May could be in the offing, said one person familiar with the matter.

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