Continental’s partnership waltz
Just like the cute girl at the high school dance, Continental Airlines is flirting with everyone these days. I’m not sure what they have that makes them so attractive, but even though they have been making eyes at the boys on the block, they still don’t have a date.
The reason they’re playing the field? Fuel prices, says Forbes.
The airlines have been forced to look at consolidation since the rising cost of oil has pushed their fuel costs to become unmanageable. The weight of fuel costs on the bottom line has caused nine smaller carriers to go out of business since Christmas. It also already forced one merger into existence. Delta and Northwest are set to merge later this year and are currently on Capital Hill trying to receive approval.
Even with the caps proposed at Newark Airport, Continental’s strength there is a big plus for the airline as well as its good South American route structure. Look for it to hook up in some way with either United or Delta/Northwest to take advantage of their Asian route systems.
The easiest solution for the industry would be for Congress to allow one of the majors die a nice bankruptcy death. I’m talking Chapter 7. Rest in peace.
United Airlines seems like the best candidate.
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