American and Alaska Airlines Expand Partnership

by Christopher Freeburn | February 4, 2013 12:30 pm

alaskaair 300x200 American and Alaska Airlines Expand Partnership[1]On Monday, American AirlinesĀ  and Alaska Air (NYSE:ALK[2]) said they planned to increase the number of routes covered in their existing partnership[3].

The news didn’t help shares of either company. American Airlines’ parent AMR (PINK:AAMRQ[4]) saw its stock tumble more than 2% in Monday midday trading, while shares of Alaska Air fell more than 1%.

The expanded agreement includes 22 Alaska Air routes covering Hawaii, the Pacific Northwest, as well as San Diego to Washington D.C., Boston and Orlando, and 19 American routes between Los Angeles and Orlando, Houston and Washington D.C., as well as flights between Texas and the Pacific Northwest, USA TODAY notes.

The airlines currently share passengers on a number of routes, putting their airline codes on seats on each other’s planes. Passengers can then purchase tickets that cover flights on both airlines’ planes, while still earning frequent flier miles. The practice is called codesharing.

American, which continues to reorganize under bankruptcy protection, is looking for potential alliances and has discussed a possible merger[5] with US Airways (NYSE:LLC[6]). Alaska Air has recently negotiated partnership agreements with Delta (NYSE:DAL[7]).

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/07/alaskaair.jpg
  2. ALK: http://studio-5.financialcontent.com/investplace/quote?Symbol=ALK
  3. increase the number of routes covered in their existing partnership: http://www.usatoday.com/story/todayinthesky/2013/02/04/american-alaska-airlines-boost-alliance-frequent-flier/1890333/
  4. AAMRQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAMRQ
  5. and has discussed a possible merger: http://investorplace.com/2012/08/american-airlines-and-us-airways-in-merger-talks/
  6. LLC: http://studio-5.financialcontent.com/investplace/quote?Symbol=LLC
  7. DAL: http://studio-5.financialcontent.com/investplace/quote?Symbol=DAL

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