United Airlines and Continental Airlines have agreed to merge in a deal worth $3 billion, and are expected to announce the agreement soon.
United will acquire Continental under the deal, and the airlines' boards have agreed to the merger, say local media reports quoting unnamed sources.
The new airline will retain United's name and will be based in Chicago, say the reports.
Speculation on a possible merger between the two Star Alliance carriers has been rife in recent weeks, particularly after merger talks between United and US Airways broke down.
Continental, which posted a $146 million loss in its first quarter, has declined to discuss the issue.
Source: Air Transport Intelligence news
