18 April 2008

The Game is ON - Continental Redeems Golden Share

OK - so while I hate this - it looks like the game is afoot.

CO has redeemed its Golden Share back from NWA. So now the consolidation game can commence in earnest. It is no longer about common sense. It is about the cojones of boys and their toys.

I am firmly convinced that the best result here for CO is to take on the bigger fish and become the residual management team of a combined UAL/CO. Tilton seems to have outlasted his welcome in Chicago. Besides the $35 million in cash must be burning a hole in his pocket.

For American- this leaves few options. They definitely don't want to have to rescue US Airways. She who is decidedly the ugliest sister in all of this. But American's ego knows no bounds.

One prize is the shy and distant cousin - Alaska Airlines. She now has a great presence in the West Coast with 3 major hubs (SEA, PDX and LAX). A low cost operation and a great commuter airline - Horizon.

As I have said many times I hate this. This is bad all round.



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