Continental, US Airways continue code share talks Wednesday June 19, 4:37 PM EDT By Julie MacIntosh NEW YORK, June 19 (Reuters) - Talks between Continental Airlines Inc. (CAL) and US Airways (U) on a potential code sharing tie-up are progressing, Continental's chief executive said on Wednesday, but sources close to the issue have said US Airways is close to striking up a deal with United Airlines. US Airways Group Inc., the sixth-largest U.S. air carrier, is struggling to stay financially afloat after demand for its East Coast-based flights plunged following the Sept. 11 attacks on the United States. It asked the government last week to provide backing for nearly a billion dollars in loans. US Airways has said finding a partner for a code share deal, which would enhance its revenue, is a crucial component of its plan to salvage its business. "We've had good talks with US Airways," Continental Chairman and Chief Executive Gordon Bethune told reporters after a speech in New York on Wednesday. "They would be a wonderful partner. But we'll wait to see what US (Airways) does." Code sharing arrangements allow travelers to fly on more than one partner airline as they complete different legs of their trip, while the carriers tap into each other's geographical markets. Airlines place their individual codes other airlines' flights and share the revenue. Bethune said Continental, the fifth-largest U.S. airline, reaps an extra $200 million in revenue each year from its code share agreement with Northwest Airlines Corp.(NWAC), which is said to be the arrangement US Airways is using as a model as it talks with potential partners. Any extra revenue stemming from a code sharing partnership with US Airways would be less than the amount Continental takes in from its tie-up with Northwest, the nation's fourth-largest carrier, Bethune said. Continental has its largest hubs in Houston, the New York City area and Cleveland. The route structure at UAL Corp.'s (UAL) United Airlines is relatively sparse on the East Coast compared with its coverage in other areas of the United States. Roger EWROPS