While this may be true we all know that without a merger UAL has serious problems going forward and few give them any chance to survive on their own. Deep down (and sometimes publicly) everyone at UAL knows they're circling the drain. Years of arrogance and poor management have left a once proud carrier desperately seeking a savior. The last few weeks have seen attempts to raise cash. First UAL announces an aircraft order that no one believes is serious or would yield a single airframe inside of 8 years. The aircraft order a ruse to convince potential buyers of the newly released bond program that they are investing in a sound carrier with plans to grow and prosper. It's readily apparent there is no plan forward, no plan to become viable. Instead, "right sizing" to make the company attractive for "merger" aka last ditch buyout.
CAL has plenty of losers (98% of which are holdovers in IAH), there is no question about that. In the end, this isn't about CAL. It's about UAL and what piece of UAL is left to merge with. CAL had a look at those books and walked away from the deal. Depending on which analyst you choose to subscribe to CAL would be much better off shopping the inevitable fire sale scheduled for sometime in the coming year. Here's some light reading for you.............
http://online.wsj.com/article/SB124630802244770103.html
http://www.reuters.com/article/bondsNews/idUSN2959811120090629
