http://www.forbes.com/reuters/feeds/...-UPDATE-1.html

So, CO has rejected the reported interest from UA and seems, if the posturing is to be believed, seems ready to align itself quite tightly with AA/BA.

As this industry is rather interconnected and assuming future moves stick to this framework what do you see as an asset/liability/opportunity for B6 who has stated they would like to remain independent but also has stated they would like to explore cooperation with LH?

I see it as relatively neutral to slight positive for B6. Had UA/CO teamed up the connectivity that LH is looking for would've likely been served in large part through codeshares via EWR and onward connections on CO's route network from there. LH is now giong to get to continue using B6 for that - assuming they actually ever do make that happen - which is good for B6. At the same time, I don't foresee a ton of traffic on those connections, much like I don't see a ton on the B6/EI partnership. If the LH involvement becomes more serious then things will change significantly.

So LH may get a bit more involved than they would have should the UA/CO deal happen (and it still could) but overall right now I see very little impact on B6.

The biggest impact is that as UA is desperate to merge, their only choice is now US Airways. According to reports today, this merger will result in a significant reduction of capacity. They will have to divest some of their Washington DCA operations. PHL/IAD/CLT are not all that far from each other. LAX/SFO/PHX/LAS/DEN would also be overkill. There should definitely be some opportunities out there for B6. The US/UA merger seems like it would result in a total mess which would also drive more passengers to the likes of B6 and VX.

...And that's not to mention the current mess still going on with the merger between HP and US.

True. As both of these carriers are already aligned with Star(the only 2 US airlines so aligned in fact) and, as you pointed out, there would be a reduction in capacity that would follow, it would result in only one afilliated US airline, however large. They also would maintain (almost) no connecting options for international arrivals in the NY area.

Does anyone else envision a door opening for B6 at the same time the one closed on the other side of the Hudson? Had CO merged with UA they would have most assuredly been enveloped by STAR and would have been strong in NY as well as still maintaining US's network. In this scenario they would still maintain US's network but NY is left in a (still) troubling position.

Regional members have been brought into STAR to serve a purpose in the past. Is NY and a second US airline option(assuming a US/UA hookup) a big enough purpose for LH and STAR?