Delta and Northwest to revive merger talks

Skybus Airlines Inc, a low-cost U.S. carrier, on Saturday became the third U.S. airline to shut down its operations in the space of a week, following similar moves by ATA Airlines Inc and Hawaii-based Aloha Airlines.

United Airlines, whose parent is UAL Corp (UAUA.O), and Continental Airlines (CAL.N) had started merger talks of their own earlier this year, but those talks have been stalled as the two airlines wait to see what happens with Delta and Northwest, another source with knowledge of the matter told Reuters.

(Additional reporting by Mark McSherry; Editing by Tim Dobbyn)