Airlines discuss alliance following failed merger

June 19, 2008 6:40:33 PM PDT
Two major U.S. airlines that recently tried to merge, but failed, are talking about uniting to battle soaring fuel prices.

Continental and United are discussing the possibility of an alliance.

Under such a partnership, airlines typically work together to boost efficiency by selling tickets on each other's flights.

The airlines, however, are barred from working together on pricing and scheduling because of anti-trust laws.

Stocks for both airlines soared Thursday on the news.