Aviation: Merger in the Air

Like the ailing railroads, the nation's ailing airlines hope to merge their way out of their difficulties. Last year United merged with Capital; last month money-making Continental agreed to combine with money-losing National. Now the most likely candidate for a corporate marriage is Eastern Air Lines, the nation's third largest. It is in the handholding stage with two other giants—American and Trans World Airlines.

Eastern has plenty of reasons for considering a marriage. Last year it accounted for an estimated $5,400,000 of the industry's overall loss of $30 million. By merging, Eastern...

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