United Airlines, US Air in merger talks: report

"UAL Corp.'s United Airlines and US Airways Group Inc., both of which filed for bankruptcy last decade, are holding talks on a merger that would reshape the U.S. industry," Bloomberg reports here, citing unnamed sources. US Air is the dominant carrier at Philadelphia International Airport.

"Discussions began in mid-February on the tie-up, which would help United steer travelers to international flights from US Airways' domestic routes... Combining United and US Airways would create the second- largest U.S. carrier and put pressure on AMR Corp.'s American Airlines, now No. 2, and Continental Airlines Inc., which held merger talks with UAL in 2008."