Right on! I think (hope) that the codeshare arrangement is working for them. The wave of the future seems to be making your profit in international flights and downsize your domestic network, so I can't see AA taking on more domestic routes by buying Alaska. But what's logical about the airline industry?

There's always been rumors about someone buying AS. Back in the late 90s many people were predicting NWA was going to do it. Besides, who has the money right now? Then again if AS's stock keeps getting hammered they could become an attractive target for a buy out.