Continental and United reportedly in merger talks
By Tomoeh Murakami Tse
Washington Post Staff Writer
Thursday, April 15, 2010; 4:05 PM


NEW YORK -- Continental Airlines and United Airlines are in discussions about a possible merger, according to two sources familiar with the matter.
The talks are still in the early stages and could fall apart, said the sources, who spoke on the condition of anonymity because the negotiations are private.

The discussions follow reports last week that UAL, the parent company of United, had begun merger talks with US Airways.

Continental, with a strong presence in New York and Houston, is seen as a better fit for United, and could face fewer legal hurdles, according to industry analysts, who have speculated that United's talks with US Airways were an effort to get Continental to return to the table. United had discussed a merger with Continental in 2008, but Continental ultimately rebuffed the approach, deciding it would be better off on its own.

United and US Airways control much of the turf at two of the Washington region's airports, with United the major carrier at Dulles International Airport and US Airways on top at Reagan National Airport. Because they compete to keep prices low, analysts said, a merger could lead to higher ticket prices for Washington area air travelers.

The Continental and United merger talks were first reported Thursday online by the New York Times.