AMR, Continental in merger talks

2008-2-20

American Airlines and Continental Airlines have had talks about a merger but it is not clear if the discussions will go any further.

Continental has been in intensifying discussions with United Airlines about a possible tie-up.

It is unclear if the latest development with American, reflects on prospects for United and Continental.

Industry experts have also suggested American might want to pursue a smaller low-cost airline rather than a network rival.

The flurry of merger speculation comes as Northwest Airlines Corp and Delta Air Lines near a merger. Industry sources said a deal could be announced as early as next week.

Continental has declined to comment on potential mergers. American officials could not be reached for comment.

Source: cargonewsasia
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