My prediction:
Since NW and DL are going to combine, I predict a merger announcement with UAL. The merger game has begun in earnest - here we go! Market Caps are way down, so the dollars required to do the deals are also relatively low, with potentially great rewards in a short amount of time due to capacity restrictions and consolidation, as well as present and future BK's (think Virgin, Frontier - if they don't merge -, Spirit, and possibly JetBlue). UAL publicly stated that they were looking to merge with a carrier strong in the NE, with a hub in the SE, and a strong carribean presence. Folks, that's either DL or LCC, and DL already has a dance partner. LCC loses the hokey stock symbol, gets a name change, stays in the Star Alliance, and gains economies of scale. UAL gains in the aformentioned route structures and revenue, and also LCC's aircraft orders (UAL has none). Look for UAL to ground 737's (gas burners) as quickly as possible with the depressed leasing market providing opportunity to replace them with more fuel efficient airframes from the BK's. This also solves the China problem for LCC (unions take strategic notes here).
What about UAL's interest in CAL? Smokescreen, due diligence, or just crafty horsetrading - you decide - but I think AA has their eye on CAL...if they have any $$ left after buying 100's of thousands of hotel rooms for stranded pax this week.
This leaves Frontier to merge with Alaska, Spirit and Jetblue combining, and Airtran and MidWest (finally).
Folks, there are two drivers in today's environment - Fuel cost and economies of scale. There is one competitor for all airlines, and that is LUV. To compete with them, you must lower your fuel costs by paying less (ha ha) or burning less. You must provide better service, more destinations, and a FF program that hooks the consumer to 'only' your company.
Code sharing is dead, doesn't go far enough. This is only the beginning of consolidation - the next time it's on a global scale.
Now, back to your regularly scheduled program.