Continental, United merger by weekend: report

America's two major airlines, Continental Airlines and United Airlines (UAL) are making steady progress in their merger talks after United's failed talks with US Airways Group Inc, say media reports.

Last week, US Airways Group Inc said it was no longer in talks with UAL for a possible merger.

The talks, which earlier this week were reportedly bogged down over price issues related to an all-stock transaction, is gaining momentum and a deal can be expected as soon as this weekend.

The merger of UAL and Continental would result in an airline larger than Delta Air Lines Inc, which has occupied the top slot ever since it bought Northwest two years ago.

Additional Continental board meetings were scheduled for Friday and Sunday, reported the Houston Chronicle daily.

Analysts say both the airlines are keen on the deal. However, neither airline has publicly confirmed the merger talks.