The industry is potentially headed toward its largest loss year ever, and there is absolutely no evidence of fundamental improvement on the horizon.
Alliances do not increase real capacity. They do not increase competition. Therefore, they do not lower fares.
(I)t doesn't mean lower fares. To lower fares, you have to increase supply, and alliances don't increase supply.
It is really interesting to note that Continental senior management has been a very sizable and active seller of Continental stock in the past month and these are not dumb people, and it is very atypical to sell in anticipation of an outright acquisition.
