Continental Redeems Golden Share, considers leaving SkyTeam

[RJAA]

Bahaha, give me one reason why Continental should remain in Skyteam.

 

[SuperFLUF]

Bahaha, give me one reason why Continental should remain in Skyteam.

I don't see how we could and make it for more than a few years?

 

[Eagle757shark]

Alaska is a good airline and would be a good fit, route wise, but its not enough.

If the DAL/NWA deal goes through we will need to grow rapidly to compete. The problem is where do we get the aircraft from? Especially the widebodies? Boeing is backordered and Airbus isn't even a consideration.

Just having fun but what about this, United and US Airways merge. Then Continental, Alaska and AirTran merge. Would that be big enough? Looking at all these different scenarios, thought I'd throw out another one. Heck....I don't know what is going to happen!

 

[Fubijaakr]

Actually, I think you're right CAL/AS wouldn't provide the gravitas CAL needs in the wake of NWA/DAL.

 

[Occam's Razor]

NWA's golden share was contingent on the former not entering into any merger agreement. Its tie-up pact with Delta Air Lines earlier this week (ATWOnline, April 16) allowed CO to buy back the share for $100,

They'll get it as soon as their check clears...

 

[Truckdriver]

Just having fun but what about this, United and US Airways merge. Then Continental, Alaska and AirTran merge. Would that be big enough? Looking at all these different scenarios, thought I'd throw out another one. Heck....I don't know what is going to happen!

Right now it would be a very poor move to merge with a domestic only airline. What CAL is looking for is international routes with the associated widebodies. Tacking on more low yield domestic flights would only hurt CAL at this time. Now down the road, I think these mega-airlines are going to need to stregthen their domestic operations to feed the international stuff. Right now they just need the cash generating international routes and the pricing power of having less big players. When they start making billions per year, then they can work on some of the smaller domestic operations.

 

[Mr.B]

If I were a betting man... I think they will join Star Alliance when they merge with UAL and the 2 of them will get anti-trust immunity with Lufthansa.

I'll second that bet. Done deal.

 

[Truckdriver]

If I were a betting man... I think they will join Star Alliance when they merge with UAL and the 2 of them will get anti-trust immunity with Lufthansa.

Something to think about is the Lufthansy investment in JetBlue. I kinda think whoever ends up with UAL will also end up with JetBlue. CAL/UAL/JBLU would be a hard sell to the DOJ with EWR and JFK. UAIR/UAL/JBLU might be easier and the seniority integration wouldn't be as difficult with the new USAPA representation and no representation at JBLU. Everyone was excpecting the DAL/NWA deal, but I kinda think the next one will surprise us.

 

[RJAA]

LH's JBLU investment is probably just to keep Delta's hands off of JBLU to protect a goldmine NYC market for its future partner. Because LH knows it needs a strong North Atlantic partner (whoever that may be) more than ever in the wake of AF/KL/NW/DL.

 

[Truckdriver]

LH's JBLU investment is probably just to keep Delta's hands off of JBLU to protect a goldmine NYC market for its future partner. Because LH knows it needs a strong North Atlantic partner (whoever that may be) more than ever in the wake of AF/KL/NW/DL.

You may be right. I did hear a Delta exec say that they were not interested in Jetblue because they did not want anymore domestic routes and almost all of Jetblue's routes overlap Delta routes. At one point they were considering it to remove competition and take control of JFK, but decided it would not be worth the investment. It would have added no value to Delta other than increase pricing power. I think UAIR is going to make a play for someone else, and I think the likely target will be UAL. With JetBlue having control of the domestic market out of JFK, I think that whoever ends up with UAL may also make a play for JetBlue. I guess we'll see.