American Airlines, US Airways could merge

CHARLOTTE -- A possible merger between American Airlines and U.S. Airways that would create the nation's largest carrier could be in the works and announced as soon as next week.

The two airlines have been discussing a potential deal for months and sources tell ABC News affiliate WFAA that the board of directors of AMR Corp., American's parent company, will meet on Monday to consider a possible merger.

Nothing has been decided and no actual deal is in place, a source told ABC News. That doesn't mean a deal can't be hammered out between the two airlines.

Both airlines have declined to comment on reports that a merger is imminent. If a deal is reached, the new airline would become the largest in the U.S.

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