Shanghai Air-China United merger mooted

Shanghai Airlines is in talks with People's Liberation Army-owned China United Airlines about a possible merger, the South China Morning Post reported. If the merger goes ahead, the carrier will get 38 new routes to add to its current 100-route network and a hub at Beijing's Xiyuan Airport. China United suspended airline operations in 2002 in line with government policy requiring the PLA to wind up commercial activities. Trading of Shanghai Airlines' A shares was suspended Friday, pending an announcement.