Shoot, from a DC-9 guy, late model 727's qualify as new shiny jets. Keep in mind many of CALs fleet are aging. The powers to be have bet a large portion of the airline's future lift on the 787. Although they claim Boeing is paying "hush money", there has been no fore-site to convert failed 787 positions to anything that flies. Instead they say the Boeing cash is more needed in this economy.

The reality of a CAL UAL merger will have more to do with, can the underwriter's and investors make a quick payback by putting the deal together in the form of something that will survive? AND IS THERE ANYTHING TO SIPHON IMMEDIATELY. Beyond that, the current creditors may have to come to Jesus when they consider the huge cash reserves they have insisted on, not just at CAL but in the industry. With just a little relaxation and just a little recovery in pricing power and either airline could shine for the investors in 2010. Then the deal will happen if alliance is still viewed as profitable. Personally I think Mr. K. was tossed by the CAL BOD. You don't willingly leave a $10M a year job in search of some startup. He openly stood in the way of the CALUAL deal in the past and gave the financial industry reason to stop thinking M&A with CAL and UAL in the same sentence was a good thing.