Canada's Two Airlines to Discuss Merger: Air Canada and PWA Corp., operators of Canada's two national airlines, will begin discussions this week on a possible merger. PWA, parent company of Canadian Airlines International, also said it has terminated discussions with American Airlines about a possible alliance. PWA and Air Canada have been losing money and cutting staff. The two have engaged in fierce competition, slashing seat prices repeatedly to try for a bigger share of the market. Air Canada Chairman Claude Taylor has said for months that the country cannot support two major carriers.