United-US Airways merger talks suspended: source

NEW YORK -- United Airlines and US Airways have suspended merger talks due to concerns about labor opposition and integration costs, while United draws closer to an alliance with Continental Airlines, a source close to the talks said late Thursday.

United Airlines Chief Executive Officer Glenn Tilton told his counterpart at US Airways, Doug Parker, at a meeting Thursday that it was best not to pursue a merger at the moment. But he left open future possibilities between the airlines, the source said. Both United and US Airways declined to comment.

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