Well, it isn't just a rumor being spread around. It is an article in USA today.
Delta Again Considers Buying Continental, USA Today Reports
Washington, Jan. 10 (Bloomberg) -- Delta Air Lines Inc., the No. 3 U.S. airline, is again considering buying Continental Airlines Inc., which it tried to buy two years ago, USA Today reported.
News that AMR Corp.'s American Airlines, the No. 2 U.S. airline, is close to buying Trans World Airlines Inc. plus a part of US Airways Group Inc. prompted Delta to immediately contact its Wall Street advisers to explore a Continental acquisition, the newspaper reported, citing unnamed knowledgeable people.
Delta and Continental wouldn't comment, USA Today said.
UAL Corp.'s United Airlines, the No. 1 U.S. airline, is waiting for regulatory approval to buy US Airways. If both the UAL and American transactions take place, Delta would be left with 18 percent of the market.
Airlines rely on the size of their networks to win contracts with companies that let them carry the most lucrative passengers in the industry -- business travelers. Plus, frequent fliers prefer airlines that give them more ways to earn and use their mileage credit. Costs can be spread across a bigger network.
Jan/10/2001 7:28 ET
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