SEATTLE(TheStreet) - Alaska Airlines (ALK - Get Report), locked in an escalating David vs. Goliath battle with Delta (DAL - Get Report), got some good news last week when Standard & Poor's raised its bond rating.
Nevertheless, Alaska shares have been declining in the two-and-a-half weeks since a leading airline analyst cut his rating to sell from hold, based on the mounting competition with the world's third-largest carrier. Shares gained $2.93 on Friday to close at $73.50, apparently due to speculation that Delta or someone else might seek to acquire Alaska.
For the present, Delta is on the offensive in Seattle, and Alaska -- which said regularly that it wants to remain independent -- is battling back. Delta on Tuesday announced new Seattle destinations that include Juneau, which will become its third destination in Alaska, complimenting Anchorage and Fairbanks. Alaska responded quickly, adding service in Salt Lake City.
Alaska also said last week that it has signed a deal with Russell Wilson, the Seattle Seahawks quarterback. who will take part in marketing activities, appear at events and work with the carrier to support youth and education programs. The airline termed Wilson's job CFO, or chief football officer.
The Wilson deal shows just how tough it is to compete with Delta. Wilson plays for a team that signed a deal in September to make Delta its official sponsor, to rename the club seating level the Delta Sky360Club and to provide various Delta signs and branding throughout CenturyLink Field.
The field, incidentally, is named for the third-largest U.S. telecommunications company, which is based in Monroe, La., which was Delta's headquarters from 1925 to 1941.
Written by Ted Reed in Charlotte, N.C.
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