NEW YORK, Sept 26 (Reuters) - Continental Airlines Inc. (CAL.N: Quote, Profile, Research) is considered an attractive merger partner, but bankrupt Northwest Airlines Corp. (NWACQ.PK: Quote, Profile, Research) would determine if Continental plays a role in future industry consolidation under a long-standing pact between the two carriers. The airline industry is seen as ripe for mergers because of persistent overcapacity, which has exposed carriers to brutal fare wars. Speculation of pending consolidation in the U.S. airline industry heated up on Monday after Crain's Chicago Business reported that United Airlines parent UAL Corp. (UAUA.O: Quote, Profile, Research) hired Goldman Sachs (GS.N: Quote, Profile, Research) to explore strategic options. UAL and Goldman declined to comment on the report. Continental is often mentioned as a potential partner for United. But any consolidation involving Continental -- the No. 4 carrier in the U.S., which holds coveted positions in New York and has a growing international network -- would be complicated by the relationship between it and Northwest. Northwest holds a so-called "golden share" in Continental, which gives it the right to block mergers involving the Houston-based carrier, according to Continental filings with the Securities and Exchange Commission. The unusual relationship dates back to 2001 when Northwest agreed to sell its shares in Continental after it was sued for anticompetitive behavior by the U.S. Department of Justice. The share "forces Continental to negotiate with Northwest if there's a transaction that results in a change in control," said airline industry consultant Robert Mann. Northwest "would not want (its broad code-sharing agreement with Continental) yanked away without further negotiation on some manner of its continuance," he added. The arrangement between the two airlines reflects the complexity of mergers in the airline industry. Network carriers like Continental, Northwest and United have complex alliances with other carriers that allow them to sell seats on other flights and expand their service. Continued... < Previous 1 | 2 View our videos at: http://www.youtube.com/profile?user=ewrw4co Roger & Amanda La France