United and Continental airlines, carriers that broke off merger talks last month, are in discussions to form an alliance to set pricing and schedules, company sources said.
The effort is separate from United’s negotiations with US Airways on a possible merger, said the people, who asked not to be named because the talks are private. United will pick one of those choices or stay independent, the people said.
An alliance with U.S. antitrust immunity to collaborate on fares would provide most of the benefits of a merger while skirting regulatory challenges and the need to mesh workforces.
Separately, Lufthansa chief executive Wolfgang Mayrhuber said he would support a merger of fellow Star Alliance members United and US Airways. The Associated Press
