Merger talks are back in full force in the airline industry, but I can guarantee that one company won’t be the first to break the ice.
You see, Northwest owns a golden share of Continental. As long as NW is in control of that golden share Continental can’t merge with another airline.
However as soon as NW announces plans to merge, regardless of whether it passes regulatory muster, it must sell the golden share back to Continental for $100.
At any rate here’s hoping that none of the mergers pan out, industry consolidation is never good for consumers. (and it’s more often than not bad for the companies involved…except for the investment bankers that is!)
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2 Comments On "Price Of Continental’s Ticket To Freedom? $100."
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Do you mean to say NW owns $100 of continetal?
I am a premier exec with United and Gold on Delta. I fly mostly out of Miami, NYC, CHICAGO, FLL, MIA, DFW, ATL.
YOU WOULD THINK I WOULD LOVE AMERICAN, BUT ACTUALLY HATE THEIR DOMESTIC UPGRADE POLICY.
LAST I HEARD UNITED AND DELTA MIGHT MERGE, NOW THEY SAY UNITED- CONTINENTAL.
PERSONALLY, IM NOT A BIG FAN OF EITHER TX BASED AIRLINES.
WHAT DO YOU THINK ABOUT A UNITED DELTA MERGER