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WASHINGTON, US - UAL Group, parent company of United Airlines, is looking at a possible merger with US Airways after its advances to Continental Airlines fell flat, The Wall Street Journal online reported on Sunday.
The newspaper, citing people close to the affair, said talks have been ongoing for six weeks and a decision could be taken in the next ten days.
UAL and its smaller rival, US Airways, have reportedly identified US$1.5 billion (S$2 billion) in cost savings and revenue enhancements that could arise from a merger.
However, the Journal cites concerns by some people involved about regulatory and labor problems posed by a match-up, which make it far from a done deal.
Together, United and US Airways - ranked second and seventh in the United States respectively - would become the world's largest airline, slightly bigger than the new Delta-Northwest grouping.
United originally planned a merger with Continental but its advances were rejected on April 27.
It could still convince Continental to leave the Skyteam alliance, which includes Delta and Northwest, and form commercial and operational links with it instead.
British Airways indicated last week that it was negotiating a possible admission of Continental into the OneWorld alliance, which also includes American Airlines. -- AFP
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