View Full Version : If you can't beat'em....


Rather Be Skiing
10th Jun 2012, 17:03
Since ME carriers aren't going away, maybe there will be some truth to this idea.

Bet tie ups like these would drive LH and the Star Alliance to distraction.

http://www.centreforaviation.com/analysis/oneworlds-ba-and-qantas-may-shake-up-global-alliances-irreversibly-as-emirates-and-qatar-enter-75416



Contacted
11th Jun 2012, 03:26
Emirates have the critical mass to stand alone. So far they have maintained profitability. The other two have opaque finances. Nobody really knows if they make any profit. Continual expansion without profitability will increasingly draw criticism of over capacity, seat dumping, and State subsidy. This will limit their growth and could be their undoing.
Forging alliances is a way to mitigate this and reduce subsidy scrutiny.
Alliances dilute competitiveness. Price fixing, sold to passengers as convenient global connections.
Emirates have avoided global alliances. As long as their finances remain good, this will not change.