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Nation IN BRIEF : TEXAS : Continental Airlines Merger Talks Told

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From Times Staff and Wire Reports

Continental Airlines is in discussions with Northwest Airlines and USAir about a possible merger, a newspaper reported. Continental President Robert Ferguson was quoted in the Houston Chronicle as telling employees in a taped message that “we have had and continue to have very preliminary discussions with Northwest Air and USAir about possible mergers.” The newspaper said that Delta Air Lines and British Airways also were thought to have talked with Continental about merging and that Los Angeles investor Marvin Davis has met with the airline’s creditors about putting in some money. Houston-based Continental has been in Chapter 11 bankruptcy since last December.

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