The airline subsequently cut its ties with the shipping company.

Analysts said the airlines could cut costs significantly in a merger.

The reason is that they allow airlines to cut fares on a limited basis.

"It has helped us that the airlines have cut back on serving food," she said.

As other airlines cut back, she said, "Their former employees come and knock on our door."

Even as the big airlines cut, the low-fare companies are expanding.

After Sept. 11, airlines cut both their domestic and international schedules significantly.

Most airlines have cut capacity 20 percent to save money.

In October, 2001, the airline cut 20% of its staff.

Both airlines are cutting the salaries of all other managers by 5 percent.