History doesn't have to repeat itself...and Gordon Bethune, love him or hate him, is no Frank Lorenzo. It would be about the only way to raise the required capital. A legacy airline bringing new stock to the open market now would be laughed at (Expressjet somehow got away with it awhile back and did OK), while a holding company would give interested investors an equity stake in both carriers from day 1.

I see the holding company raising capital strictly though institutions and private placements unless the tender offer included stock and cash. I don't think they can raise enough cash to buy out all the stock given the current price of CAL and UAL.

For those current stockholders of CO, if you were offered $15/sh (price @ time of post is 24.67) of CAL and 1/2 share of the new holding company for every share of CAL tendered, would you take that as a good deal? I am measuring response to my view that a blended CO/UA would be the strongest carrier in the US by far.