A committee formed to explore Delta Air Line's strategic options will ask its board of directors to allow its chief executive to hold merger talks with both United Airlines and Northwest Airlines, the Wall Street Journal reports.

Unnamed sources say the goal is for Delta to ultimately choose between the two airlines. The board could decline the request or decide that C.E.O. Richard Anderson should hold talks with only one carrier.

Delta's stock surged 18 percent on the report, after rising 15 percent yesterday as the rumor gained momentum. Shares of Northwest were up 24 percent, and stock in UAL, the parent company of United, soared 21 percent. Shares of Continental Airlines, US Airways, and American Airlines went along for the ride.

While it's far too early to reach any conclusions about Delta's fate, the report does seem to signal that airline consolidation is finally ready for prime time. Last year, Delta rebuffed a hostile $9.5 billion offer from US Airways before Delta emerged from bankruptcy. Continental has similarly rejected advances by United.

Any combination would be subject to intense regulatory scrutiny. The merger talks have reached the advanced stage now because the carriers believe they have a better chance of getting deals approved under a Republican administration, the Journal reports. Increased competition, rising fuel costs, and a slowing economy also add to the urgency.

The Journal reports that any Delta deal would be a stock-for-stock transaction.