God this board can be funny! UAL is toast! 8 billion more in debt thanks to Tilton and nothing to show for it- except for more red ink, older employees and aging airplanes. WIthout a doubt, UAL is going bk and CAL is positioning itself to pick the good stuff from the carcass. Why else would CAL be so involved with such a hopeless airline?[/QUOTE]
Because CAL had no choice. DAL would've dominated every decision in Skyteam and CAL would've likely been out of business in 5 yrs (or severly shrunk) as a result. This was explained in great detail by our execs and union reps. Corporate customers is where the money is and they want clout when it comes to mileage loyalty. So CAL had a choice between gambling with Skyteam, signing up with OneWorld (American would've have chopped up CAL if that happened and there was too much overlap) or joining Star. I'm not particularly impressed with Star Alliance either but it's not like we had any other options.
RA started this consolidation phase... we're all along for the ride. Glad he got his $13.2 million. Funny how his shareholders got the shaft though. Caveat emptor when it comes to airline investing though, right?