American Airlines in talks with Continental and US Airways

NEW YORK Fri Apr 25, 2008 3:51pm EDT

American Airlines MD-80 aircrafts sit on the tarmac at Chicago's O'Hare International Airport April 9, 2008. REUTERS/John Gress

American Airlines MD-80 aircrafts sit on the tarmac at Chicago's O'Hare International Airport April 9, 2008.

Credit: Reuters/John Gress

NEW YORK (Reuters) - American Airlines has had early-stage merger talks with US Airways and is in advanced talks for an alliance with Continental Airlines, sources briefed on the situation said.

American Airlines' talks with Continental are focused on forming an alliance. Meanwhile. Continental is in advanced merger talks with United Airlines.

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