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Home >> Forum >> BA / AA / IB Venture Civil aviation forum
BA / AA / IB Venture
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Message of captain bill - Sent 14 Aug 20:01 |
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I might be the only one in the forum who is in total favour of this venture as I do believe it will be a good deal for passengers and for the industry as a whole. I know all about the cost of fuel but I am convinced that with this deal fares accross the pond will not rise as high as they might have done without this deal. Other carriers will see the compeditive edge that the deal brings re pricing and they in turn will keep fares as low as they can to attract passengers away from the consortium. I think by this time next year we will see BA and IB flying from other points in Europe apart from the UK and Spain and so fares from Europe to USA will come down OR remain static.
No surprise to know that Sir. Richard Branson has objected to this deal but then again it is something he is good at and as long as no one objects to his ventures everything is OK.
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Message of FLX - Sent 15 Aug 4:44 |
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Yes captain bill, I've also read about VS's high-profile(Don't they always?) objection to the link-up of AA/BA/IB a few days ago on flightglobal.com.
A tie-up of AA+BA+IB? Why not? AF/KLM+DL/NW are effectively having something similar in the Transatlantic mkt right now. Given this precedence for SkyTeam members, there's very weak legal basis to block OneWorld members to do the same. Not only do I think AA+BA+IB is a slam-dunk, I think we'll soon see StarAlliance members(Possibly LH+UA+US) to seek similar anti-trust/competition immunity.
The transatlantic mkt has changed so much since VS has successfully blocked AA+BA last time. Back then, the LHR<->U.S. trunk routes were essentially a 4-way monopoly dominated by 3 major players (BA,AA,UA)with VS being the underdog. In that sense, VS might had a point @ that time. Today, not only we've got a bunch of strong transatlantic players in LHR T4 ready to do major battle with AA,BA and UA, even non-traditional but equally tough competitors like CX has already secured JFK-LHR authority to start carving a niche fm this mkt anytime. Moreover, significant number of pax departing from other parts of U.K. no longer need LHR nor BA/AA when flying to the U.S. like they did 10-15yrs ago. Consumer choices are nearly guaranteed. On top of that, does anyone seriously think the AA+BA+IB tie-up is gonna produce fat monopolistic profit given today's oil prices(oil prices were as cheap as dirt when the last AA+BA deal was blocked)? They'll be lucky if any of them just manage to breakeven!
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