United, Delta in Merge Talks

United Airlines and Delta are in talks to merge and create the nation's largest airline, the AP reports. The new airline would keep the United name and surpass American as the nation's biggest. Delta's CEO denied that any specific talks are under way, but the company said it had formed a committee to consider all its options, including mergers, the Wall Street Journal says. 

The news comes as a major Delta investor told the airline to consider a merger while Bush is still in office and the "right regulatory environment" is in place."They want to get something done before a new administration gets in," said an AP  source. One scenario has Delta CEO Richard Anderson heading the new company, with its headquarters in Chicago. (More Delta Air Lines stories.)