The Chicago, Illinois based UAL Corporation is now looking to a possible merger with the Tempe, Arizona based US Airways, following the ongoing popular trend of mergers in US airline industry.

The parent company of United Airlines, UAL Group first started merge talks with the Continental Airlines, but its advances failed last month with the Continental Airlines deciding to stand alone. The Continental Airlines is reportedly in alliance talks with American Airlines and British Airways.

According to the sources close to the airlines, talks have been ongoing for six weeks and a deal between UAL Corporation and the US Airways could emerge in as soon as 10 days. The two airlines have identified 1.5 billion dollars in cost savings and revenue enhancements that could arise from a merger.

According to the experts in the industry, United and US Airways are ranked second and seventh in the United States respectively, and the merger would result in creating the world's largest airline, slightly bigger than the new Delta-Northwest grouping.