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WASHINGTON, April 28 (Reuters) - United Airlines, a unit of UAL Corp UAUA.O and US Airways Group Inc LCC.N are in “very advanced” merger talks, two sources with knowledge of the matter said on Monday.
A deal, one of the sources said, could be finalized within the next couple of weeks, and could include significant cuts in capacity.
The discussions intensified over the weekend after Continental Airlines Inc (CAL.N), which had been in negotiations with United, pulled out to explore a potential marketing alliance with American Airlines AMR.N and British Airways PLC BAY.L. (Reporting by John Crawley and Jui Chakravorty Das; editing by Jeffrey Benkoe)