With the news that LH is purchasing LX, it is almost certain that LX will become (yet another) member of the Star Alliance. New Star members can keep their existing codeshare relationships, such as South African keeping theirs with DL. However, LX will become part of the mothership of Star, by being owned by LH. Assuming LX wants to keep the AA codeshare/partnership, will AA also want to keep it?
A problem I forsee:
LX has their code on AA flights and vice versa. LX sees all sales by AA where they are an operating carrier on the ticket. LX also (obviously) has their sales when AA is an operating carrier on the ticket they sell.
LX becomes part of LH. LH can see everything it wants to see with LX, including data with AA sales. LH has transatlantic anti-trust immunity with UA and can share information with UA. Potentially, UA could see LX sales where AA operates a flight, and AA sales where LX operates a flight. UA also does westbound pricing for LH/UA. UA could be setting fares for LX coded, AA operated trans-atlantic flights.
Is this a realistic problem, and if so would it cause AA to drop the codeshare? The LX partnership can't be a major one to AA.
This has come up before with AF/KL merging, AF had immunity with DL and KL with NW. I believe the solution was for AF/KL to have immunity with both DL and NW, but I don't think DL and NW have it with each other. (How the intergrity of this agreement is maintained I will never understand.)
Long-term where is One-world going to get a central European hub? LX and ZRH was supposed to be it, but it looks like BA pissed that away. Will an alliance constrained by LHR and Bermuda II, with medicore hubs in MAD and HEL, prosper long-term for AA?
(I feel like my post with all the questions and coulds and woulds sounds like USA320 :blink🙂
A problem I forsee:
LX has their code on AA flights and vice versa. LX sees all sales by AA where they are an operating carrier on the ticket. LX also (obviously) has their sales when AA is an operating carrier on the ticket they sell.
LX becomes part of LH. LH can see everything it wants to see with LX, including data with AA sales. LH has transatlantic anti-trust immunity with UA and can share information with UA. Potentially, UA could see LX sales where AA operates a flight, and AA sales where LX operates a flight. UA also does westbound pricing for LH/UA. UA could be setting fares for LX coded, AA operated trans-atlantic flights.
Is this a realistic problem, and if so would it cause AA to drop the codeshare? The LX partnership can't be a major one to AA.
This has come up before with AF/KL merging, AF had immunity with DL and KL with NW. I believe the solution was for AF/KL to have immunity with both DL and NW, but I don't think DL and NW have it with each other. (How the intergrity of this agreement is maintained I will never understand.)
Long-term where is One-world going to get a central European hub? LX and ZRH was supposed to be it, but it looks like BA pissed that away. Will an alliance constrained by LHR and Bermuda II, with medicore hubs in MAD and HEL, prosper long-term for AA?
(I feel like my post with all the questions and coulds and woulds sounds like USA320 :blink🙂