United and Continental Airlines are said to be moving rapidly toward a merger, Julie Johnsson reports, following US Airways formally ending its talks with United on Thursday. A deal could come as
early as next week, sources tell her, although some "thorny 'social' issues," such as where to locate headquarters, are still on the table.
Continental walked away from a deal with
United just before an announcement in 2008, so analysts remain cautious. The two airlines, for their part, remain mum. US Airways, however, said that its talks began to fall apart once Continental
reentered the equation; sources say that its executives were furious about being jilted.
"I am sure some 'industry experts' will suggest that US Airways will be strategically harmed
if United now chooses to merge with Continental," US Airways CEO Doug Parker wrote in a letter to employees. "They will be wrong."
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