Originally posted by SemiElite:
So CO forged an alliance with NW and HP for two reasons:
1. The partnership made good strategic sense. NW gave CO coverage in the Asian market, and HP gave them coverage domestically, west of the IAH-EWR-CLE triangle.
2. These were the only guys left, at least domestically. Unfortunately, they were still outside the major alliances for a reason...no one wanted them! These airlines truly stunk! So, for a strategic advantage, CO was forced to partner with two airlines that weren't fit to wipe their proverbial shoes!
It is nice that there are obvious synergies between CO/HP. Fact is, this partnership exists because of investment by David Bonderman and the Texas Pacific Group. I believe most of the TPG's stake in Continental and America West has since been divested, which is probably why the airlines' ties seem to be weakening.
[This message has been edited by TransWorldOne (edited 03-30-2001).]