AP source: United, US Airways in merger talks - Spokane, North Idaho News & Weather KHQ.com

AP source: United, US Airways in merger talks

NEW YORK (AP) - A person with knowledge of the situation says US Airways and United Airlines are in talks about combining into what would be the nation's second-largest airline.

Shares of both companies jumped in late trading after the news was reported by The New York Times and the Wall Street Journal. CEOs of both carriers have been outspoken in the past about their willingness to be involved in some type of merger. On Wednesday, spokespersons for both companies would say only that they don't comment on rumors.

Integrating the two airlines' highly unionized workforces would be one of the most difficult tasks. The person who spoke to AP said the companies have a plan for dealing with that issue. The person insisted on anonymity because of the sensitive nature of the talks.

 

(Copyright 2010 by The Associated Press. All Rights Reserved.)

 

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