Conspiracy theory that hit my head last night:
AA and CO are "talking" about an alliance, which has been put out there publically.
CO is looking at all alliance options and blew off a UA merger because UA is weak.
CO and UA are also "talking" about an alliance.
Absent oil prices plumetting or a merger (which may not even be enough), UA looks like it may be filing for bankruptcy again fairly soon.
Perhaps the AA and CO talks are really about a joint bid for UA in bankruptcy with an orderly split of the company? (I mean after all, what kind of benefits are AA and CO going to get out of an alliance together?)
CO is probably gathering what it would take to join Star, which they could do after this transaction (kind of like how bankrupt US brought savior HP into Star).
AA takes LAX, ORD and IAD. CO takes DEN and SFO. Fleets would be a mess, but each would have the national and international route system they want. CO gets their alliance. The country gets to 3 major international carriers (DL/NW, AA, CO). Key slots and route authorities get apportioned equally (CO gets 3 China flights from SFO, AA gets 3 from ORD/IAD, NRT slots get split, more LHR slots would probably have to go to CO, DCA/LGA slots divided up, etc). Everybody is happy, unless they work for UA. Or have to integrate the new fleets (yuck).