737nCH11:
737 said: "I just don't understand. With the NW/CO codeshare you didn't have one carrier dropping a number of routes and giving them to the other. One simply put their flight number on routes they didn't serve, but which the other carrier did. I realize that U generates additional revenue by feeding UAL and vice versa, but aren't they going to lose more than they gain by pulling out of those markets?"
Chip answers: I agree with you. The only way either airline derives revenue from the alliance is when a passenger flies on their aircraft. Furthermore, long haul has a lower CASM; therefore, in certain markets it does not make sense for either carrier to abandon certain city pairs. Finally, there are DOJ code share restrictions between hubs that require each airline to operate in these markets. Meanwhile, there are a number of Wall Street reports this weekend, where people are trying to figure out what is going on, that something is brewing between UA & US. Will it occur? Who knows, but informed people are talking about it, again.
Best regards,
Chip