This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Could American Help Alaska Face the Delta Threat?

Stocks in this article: AAAL ALK DAL

SEATTLE (TheStreet) -- Something is potentially going on between Alaska (ALK - Get Report) and American Airlines (AAL - Get Report) but Alaska executives won't say exactly what it is.

During Alaska's earnings call on Thursday, Andrew Harrison, vice president of planning and revenue management, said the two airlines are talking, which isn't surprising given that Delta (DAL) is engaged in an effort to bulk up its flying into Alaska's Seattle hub and plans to compete with Alaska on a variety of key domestic routes.

Conceivably, American could act as a white knight. Both American and Delta have code-share agreements with Alaska.

"We're getting to know the new American management team," Harrison said during the call. "I have met with their alliances folks, and we have started discussions about how we might work with the new American. It's very exciting and we look forward to future things."

Asked later whether Alaska wants to expand its relationship with American, Harrison responded: "American's and US Airways' No. 1 priority is integrating with themselves, code-sharing on each other's metal. This year we will be finalizing how much we will work together. I'll have more to say in future quarters on that."

In a recent report, Wolfe Research analyst Hunter Keay questioned whether the hostilities between Delta and Alaska might set up closer cooperation between Alaska and American.

"It is our opinion that Delta needs Alaska more than Alaska needs Delta in the context of their code-share relationship given Delta's Seattle-Asia plans and Alaska's dominance in the Pacific Northwest," Keay wrote. "If Delta pushes too hard we wouldn't be surprised if Alaska finds solace in the arms of its other partner, American, at Delta's expense."

A wide range of possibilities exist for cooperation between American and Alaska, said aviation consultant Bob Mann. The possibilities include, at a minimum, code-shares, some already in place, between Alaska flights in Seattle and Portland and American hub flights serving Charlotte, Chicago, Dallas, Philadelphia and New York. A code-share on Charlotte flights, for example, would provide Alaska passengers with an alternative to Atlanta for flights to Southeast destinations.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs