The airline segment is one of our favorite sectors and United Continental Airlines (UAL) is one of our favorite names in the industry. We like the industry because it has consolidated to the point where most markets are serviced by a duopoly. That is, two (or maybe 3) companies dominate terminals and flight segments. This has allowed companies to earn a fair return on capital. This is a relatively recent phenomenon as the industry has only become consistently profitable in the last 10 years or so.
