As the Alliance Turns.....more AA/BA/IB drama

[FWAAA]

True, but AA has managed to shrink in headcount regardless of deals.

I don't have all the answers, but is it even remotely possible that one reason AA has shrunk more than most is perhaps its unique position as the only big legacy airline not enjoying antitrust immunity over the Atlantic?

 

[Hopeful]

I don't have all the answers, but is it even remotely possible that one reason AA has shrunk more than most is perhaps its unique position as the only big legacy airline not enjoying antitrust immunity over the Atlantic?

Possibly....But with all the concessions and cost cutting that has occured since 2003...It may be time to look elsewhere for cost cutting. Shrink to profitability. And if shrinking makes any translatlantic agreement attractive, then so be it.

 

[FA Mikey]

AA could get rid of more employees and let their partners do the flying, sure they would get a smaller share of the revenue but they also have less expenses related to generating that revenue.

Here is what happens when you enter in to a revenue sharing alliance. This is not mechanic or God forbid flight attendant speculation. Its reality.

Continental Airlines Inc. will begin three new daily nonstop flights from George Bush Intercontinental Airport on Nov 1.
The flights will be to Frankfurt, Washington Dulles International Airport and Edmonton (Canada) International Airport.

Two of the flights — Frankfurt and Washington DC — are a result of the Houston-based Continental joining the Star Alliance earlier this week.

“We are pleased to further expand our network of service from Houston by linking our largest hub to Frankfurt, the largest hub of Lufthansa, our new Star Alliance partner,â€￾ Jeff Smisek, president, said in a statement. “This new flight complements Lufthansa’s existing Houston-Frankfurt service, and is a good example of the benefits that Star Alliance will bring to our customers.â€￾

full story here

 

[Boomer]

I don't have all the answers, but is it even remotely possible that one reason AA has shrunk more than most is perhaps its unique position as the only big legacy airline not enjoying antitrust immunity over the Atlantic?

Cannot prove a negative.

Alternatively: AA and the TWU proved that providing a concession gauranteed huge losses in employment just like the current administration claiming that failure to pass stimulus will reduce employment while passing stimulus increased unemployment beyond what they claimed would have occurred without it.

End State: providing concessions is no gaurantee against job losses. Unions with contractual language barring ATI should actively enforce those provisions unless and until the company contractually grants job protections if ATI is issued.

Any Union that endorses ATI between BA and AA, who also retains contractual control over that issue, that fails to endemnify the membership against future losses is guilty of a DFR.

 

[FWAAA]

According to the WSJ, Oneworld members are discussing possible concessions with the EU:

http://online.wsj.com/article/SB1000142405...iness_whatsNews

If you aren't a WSJ subscriber, you can access the article thru Google News; just search for Oneworld and it is the top result today.

 

[FrequentFlierCA]

If Oneworld is being forced into concessions the others should be, too. If regulators want to put a cap to Oneworld's flight at Heathrow they should cap Star at Frankfurt and Skyteam at CDG. What's good for the goose...

 

[700UW]

FRA and CDG are not restricted like LHR

 

[eolesen]

When you've got 75% of the market like AF and LH do at CDG and FRA (even higher at AMS & MUC), who needs slot controls to keep the competition out?....

 

[MERV]

Europe’s antitrust regulator said Monday that it was reviewing an offer by British Airways, American Airlines and the Spanish flag carrier Iberia aimed at preserving competition on long-haul routes if their proposed joint venture is approved, The New York Times’s James Kanter reported.

The only way they should give any concessions is if the rest of alliance also do the same.

The United States Justice Department has said the Oneworld deal would harm competition and lead to higher prices unless the airlines gave up some takeoff and landing slots. A final decision will be made by the Transportation Department.

I guess the industry will be stuck losing revenue because government believes that its unfair practice to not compete with each.

EU Weighs Oneworld Plan to Assure Flight Competition
http://dealbook.blogs.nytimes.com/2010/02/...er=yahoofinance