American Airlines in talks with Continental and US Airways

NEW YORK (Reuters) - American Airlines AMR.N has had early-stage merger talks with US Airways (LCC.N: Quote) and is in advanced talks for an alliance with Continental Airlines (CAL.N: Quote), sources briefed on the situation said.

American Airlines' talks with Continental are focused on forming an alliance. Meanwhile. Continental is in advanced merger talks with United Airlines (UAUA.O: Quote).