Thunderclouds on horizon for DL/NW/CO alliance???

BillLumbergh

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Aug 19, 2002
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[SPAN class=headline][A href=http://biz.yahoo.com/rc/021219/airlines_codeshare_3.html]UPDATE - US extends code-share review, competition an issue[/A][BR][BR][SPAN class=headline][A href=http://biz.yahoo.com/prnews/021219/dath054_1.html]Continental Airlines Responds to Unfounded DOT Allegations[/A][/SPAN][/SPAN]
 
I don't think there is any question that the DOT has concerns about the proposed three way alliance.
At the same time I think DL is simply patiently waiting until U files chapter 7. Meanwhile, DL stands to gain if and when UA is forced to sell off some assets. Some analysts have suggested that UA will have to reduce its size by as much as 18%.
 
I have heard that this alliance is anything but certain.[BR][BR]The Chapter "22" alliance might actually become a bigger threat after all.
 
With the ATSB's rejection of UA, US's continuing struggles and now Bethune's little tiff with the DOT, I wouldn't be surprised at all to see the alliance killed.[BR][BR]At this point, I don't think the CH 22 Alliance is that grand of a threat given how both airlines are shrinking and at least one of them may be headed for CH 7.
 

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