Continental Keeps Its Poker Face
By Ted Reed
TheStreet.com Staff Reporter
12/4/2007 3:28 PM EST
As the airline industry continuously sifts through its various merger scenarios, Continental (CAL - Cramer's Take - Stockpickr - Rating), the No. 4 carrier, remains the biggest wild card.
Over the past several years, the Houston-based airline has been named as a possible partner with three of the six network carriers, but when Continental itself talks about deals, its position is nuanced. The company has indicated that it's happy as a standalone airline, though it has said it could act if other carriers move to consolidate.
Continental has been pursued in the past. Delta (DAL - Cramer's Take - Stockpickr) bid unsuccessfully for the company in 1998, then acknowledged it was again studying a merger effort in 2000. Continental also talked with UAL (UAUA - Cramer's Take - Stockpickr - Rating), the parent of United Airlines, in 2006, when former CEO Gordon Bethune told the Newark Star-Ledger "that Continental would be the management team, obviously" if the sides decided to join forces.
Meanwhile, Northwest (NWA - Cramer's Take - Stockpickr) and Continental have long had a cozy relationship that includes a code-share, joint membership in the SkyTeam global alliance and Northwest's ownership of a stake enabling it to block any attempts that are made to acquire Continental.
To this point, United, Delta and US Airways (LCC - Cramer's Take - Stockpickr - Rating) have all said they want to be involved in consolidation. AMR (AMR - Cramer's Take - Stockpickr - Rating), the owner of American Airlines, hasn't said much at all, but generally seems cool to the idea. For its part, Northwest has seemed receptive.
At a recent investor conference, Continental CFO Jeff Misner said of consolidation: "If somebody starts stuff out there, we're not going to sit back and just do nothing. We have models on every conceivable pairing that you could think of."
Story
By Ted Reed
TheStreet.com Staff Reporter
12/4/2007 3:28 PM EST
As the airline industry continuously sifts through its various merger scenarios, Continental (CAL - Cramer's Take - Stockpickr - Rating), the No. 4 carrier, remains the biggest wild card.
Over the past several years, the Houston-based airline has been named as a possible partner with three of the six network carriers, but when Continental itself talks about deals, its position is nuanced. The company has indicated that it's happy as a standalone airline, though it has said it could act if other carriers move to consolidate.
Continental has been pursued in the past. Delta (DAL - Cramer's Take - Stockpickr) bid unsuccessfully for the company in 1998, then acknowledged it was again studying a merger effort in 2000. Continental also talked with UAL (UAUA - Cramer's Take - Stockpickr - Rating), the parent of United Airlines, in 2006, when former CEO Gordon Bethune told the Newark Star-Ledger "that Continental would be the management team, obviously" if the sides decided to join forces.
Meanwhile, Northwest (NWA - Cramer's Take - Stockpickr) and Continental have long had a cozy relationship that includes a code-share, joint membership in the SkyTeam global alliance and Northwest's ownership of a stake enabling it to block any attempts that are made to acquire Continental.
To this point, United, Delta and US Airways (LCC - Cramer's Take - Stockpickr - Rating) have all said they want to be involved in consolidation. AMR (AMR - Cramer's Take - Stockpickr - Rating), the owner of American Airlines, hasn't said much at all, but generally seems cool to the idea. For its part, Northwest has seemed receptive.
At a recent investor conference, Continental CFO Jeff Misner said of consolidation: "If somebody starts stuff out there, we're not going to sit back and just do nothing. We have models on every conceivable pairing that you could think of."
Story
