United Airlines and US Airways are close to a code-sharing deal that could provide both struggling carriers with benefits of last year's failed $12 billion merger without actually combining the two airlines, several sources familiar with the matter said.
But any potential deal between two of the biggest US airlines to share revenue through such a marketing arrangement, common throughout the industry, would require approvals on a number of levels and is far from complete, they said.
On top of the list is getting pilots at both airlines to agree.
Under code-share arrangements, one airline is allowed to place its two-letter code on another airline's flights in computer reservation systems and through a complicated system of reimbursement derive revenue it otherwise would not get.
United and US Airways announced a merger, hailed as a great combination by some and sharply criticized by others, in October, 2000. But the Department of Justice said it would sue to stop the deal in July 2001 and it fell apart.
The merger was one of the key endeavors by Mr James Goodwin, then UAL Chief Executive ousted by angry unions after he sent a letter to employees saying the airline could perish unless financial losses stopped.
UAL parent of United, and US Airways Group have both lost billions of dollars since the September 11th attacks.