UPDATE 2-UAL, Continental in merger talks-source | Reuters

Below is from the report -

Continental-United merger might be easier to get through
the labor unions, which can be a major force in getting a deal
approved.
Capt. John Prater, president of the Air Line PilotsAssociation (ALPA) union, told Reuters in February that aUnited-Continental merger would make more sense than otherpossible combinations. A spokesman from ALPA at United was not immediatelyavailable for comment on Thursday. A spokeswoman for Continental's pilots union said the grouphad "no reaction" after news broke Thursday. But UAL's pilotsunion said last week the pilots would not benefit from a mergerwith US Airways, adding it would "vehemently oppose" a mergerthat would not lead to a strong and viable carrier. Even after United and Continental halted merger talks in2008, their pilot groups have continued to talk up two to threetimes a week and discuss the possibility of a merger, Capt. JayPierce, head of Continental's pilot union, told Reuters in aninterview last week. They have discussed a collective bargaining agreement andtalked about a process to merge seniority lists, Pierce said. (Additional reporting by Deepa Seetharaman, Kyle Peterson andKaren Jacobs, editing by Leslie Gevirtz and Gerald E.McCormick)