AIR MERGER.

Skip competition. Think consolidation.

Colombia's No.1 airline, Avianca, has agreed to merge with rival ACES. The companies were hammering out details of the deal, which would also include Avianca's regional affiliate SAM. Analysts say a combined company will be a more attractive target for international players seeking strategic alliances in Colombia.

ACES has cooperation deals with U.S.-based Continental and Delta Airlines, which are currently in their own merger talks.