Comments on: Airline alliances under the microscope again http://www.upgradetravelbetter.com/2009/03/09/airline-alliances-under-the-microscope-again/ Living the first class life -- at coach prices Fri, 10 Feb 2012 09:21:15 +0000 hourly 1 By: Rich http://www.upgradetravelbetter.com/2009/03/09/airline-alliances-under-the-microscope-again/#comment-27085 Rich Wed, 11 Mar 2009 22:20:58 +0000 http://www.upgradetravelbetter.com/?p=2565#comment-27085 I'm not sure that I understand how these alliances are creating monopolies. ("Oligopoly," maybe, but that doesn't imply the same price control as "monopoly.") If one alliance controls all the slots between two airports, then you would certainly be correct. But is that the case, either between U.S. airports, or on international routes? And I think ZD is right: Oberstar's amendment will only hurt the larger legacy carriers in the U.S., for which international flights are generally their most profitable. I’m not sure that I understand how these alliances are creating monopolies. (“Oligopoly,” maybe, but that doesn’t imply the same price control as “monopoly.”) If one alliance controls all the slots between two airports, then you would certainly be correct. But is that the case, either between U.S. airports, or on international routes?

And I think ZD is right: Oberstar’s amendment will only hurt the larger legacy carriers in the U.S., for which international flights are generally their most profitable.

]]> By: ZD http://www.upgradetravelbetter.com/2009/03/09/airline-alliances-under-the-microscope-again/#comment-27084 ZD Wed, 11 Mar 2009 17:40:54 +0000 http://www.upgradetravelbetter.com/?p=2565#comment-27084 With this kind of legislation we will ensure that our airlines will lose on their international routes (those are the one that still make money for US airlines) and ensure the certain death of at least one of the big carriers. With legislation like this we are forcing our nation into a Soviet area model that will not just end with the airline industry. Next will be the automotive etc. The end result could be that no other country wants to work with us and we will jeopardize jobs for Americans and the economy of our nation. Just look at how our lobbyist and their interest group handled the issue with DHL and at the end DHL did what would become a norm in our nation - close the US operation and put many American people out of a job, if you don't want our investment and business than we will go away - only US companies will provide products and services to the US. How would we feel if this kind of laws would be implemented in other countries. We would cry foul play and this is anti competitive and anti American etc. Instead of becoming a Soviet area protectionist society we should look at solutions how we will practice what we preach and ensure the best interest of the ability of our companies to survive and to be the best. Airline Alliances are there to ensure that airlines can provide a better service and that they can benefit from each other. Should this become a law, I will have to at my best interest and start flying more other airlines on international travel, since they have in general better service and my loyalty still would count for something. In the US loyalty will not count for anything any more, other than checking in a free bag. The only carrier that would benefit from this rule would be Southwest and they would then become my preferred US carrier - you know what you get and that is not much, but at least you don't have to pay extra. The legacy carriers and some newer ones will then probably have to follow the example that Ryan Air in Europe is setting with thinking about also charging to go to the lavatory since that will be the only way how they can make money. It would be the certain death of the friendly sky's and bring our nation back closer to the stone age. With this kind of legislation we will ensure that our airlines will lose on their international routes (those are the one that still make money for US airlines) and ensure the certain death of at least one of the big carriers. With legislation like this we are forcing our nation into a Soviet area model that will not just end with the airline industry. Next will be the automotive etc. The end result could be that no other country wants to work with us and we will jeopardize jobs for Americans and the economy of our nation. Just look at how our lobbyist and their interest group handled the issue with DHL and at the end DHL did what would become a norm in our nation – close the US operation and put many American people out of a job, if you don’t want our investment and business than we will go away – only US companies will provide products and services to the US. How would we feel if this kind of laws would be implemented in other countries. We would cry foul play and this is anti competitive and anti American etc. Instead of becoming a Soviet area protectionist society we should look at solutions how we will practice what we preach and ensure the best interest of the ability of our companies to survive and to be the best. Airline Alliances are there to ensure that airlines can provide a better service and that they can benefit from each other.

Should this become a law, I will have to at my best interest and start flying more other airlines on international travel, since they have in general better service and my loyalty still would count for something. In the US loyalty will not count for anything any more, other than checking in a free bag. The only carrier that would benefit from this rule would be Southwest and they would then become my preferred US carrier – you know what you get and that is not much, but at least you don’t have to pay extra. The legacy carriers and some newer ones will then probably have to follow the example that Ryan Air in Europe is setting with thinking about also charging to go to the lavatory since that will be the only way how they can make money. It would be the certain death of the friendly sky’s and bring our nation back closer to the stone age.

]]> By: Raphaël http://www.upgradetravelbetter.com/2009/03/09/airline-alliances-under-the-microscope-again/#comment-27074 Raphaël Tue, 10 Mar 2009 12:55:08 +0000 http://www.upgradetravelbetter.com/?p=2565#comment-27074 And with the upcoming changes to the Air France / KLM miles system, flying with a specific alliance is becoming less and less interesting. (Basically, they're giving fewer miles for less flexible tariffs, which means that with my ~100,000 miles actually flown on relatively cheap tickets in 2008, I'd have gotten somewhere around 40,000 level miles credited to my account, i.e. barely enough to hit Gold.) And with the upcoming changes to the Air France / KLM miles system, flying with a specific alliance is becoming less and less interesting. (Basically, they’re giving fewer miles for less flexible tariffs, which means that with my ~100,000 miles actually flown on relatively cheap tickets in 2008, I’d have gotten somewhere around 40,000 level miles credited to my account, i.e. barely enough to hit Gold.)

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