AIRLINES

Air Canada to Merge With Rival: The parent of Canadian Airlines said it accepted a new merger offer from Air Canada, creating a virtual monopoly in the nation’s airline industry. Air Canada had offered PWA Corp., owner of Canadian Airlines, a one-for-one share swap to create a new company that would be substantially controlled by Air Canada. The Air Canada merger bid won out over a rival offer from PWA employees that could have paved the way for an alliance between Canadian Airlines and AMR Corp.’s American Airlines. Air Canada is also leading a $400-million bid for Continental Airlines, which would give it better access to the United States as well as a foothold in the Pacific Rim.