Continental, United talking merger?

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The Chronicle is reporting that Continental and United are in the early stages of merger talks:

Continental and United airlines are in preliminary talks regarding a possible merger, a source in New York familiar with the talks said today.

Talks between the two big carriers have been under way since before US Airways made a hostile bid for Delta Air Lines several weeks ago, the source said today.

The Chicago Tribune and Houston Business Journal are reporting similar information. Unsurprisingly, the New York Times covers the story with much more depth.

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