Continental cool to merger idea

CHICAGO, Feb. 8 (UPI) -- Continental Airlines Inc. is resisting the suggestion it should merge with UAL Corp., the parent company of United Airlines, an informed source said Friday.

The two airlines have been contemplating teaming up in the wake of news that Delta Airlines Inc. and Northwest Airlines Corp. are in talks to merge.

The possible combination of Delta and Northwest has forced other airlines to think about a merger or risk being overshadowed by a Delta-Northwest giant. United and Continental talked about setting a deal six months ago, Crain's Chicago Business Journal reported, but talks broke down after United insisted that the combined company be managed by UAL's management team.

UAL Chief Executive Glenn Tilton has been vocal about finding a corporate partner, but Continental, the only major airline to record a profit in the fourth quarter of 2007, has not.

The source told Cain's that Delta and Northwest could have the paperwork done for their merger in the next two weeks, in time to have the deal reviewed before the Bush administration leaves Washington.

Continental sees no reason to hurry, the source said. The airline, "will get drug into it kicking and screaming," said the source.