As I sit and gaze at my crystal ball, in addition to my visions of the past where I caught a fleeting glimpse of a Singaporean Virgin, I see a new equipment ordering and holding company.
Imagine, if you will, a virtual company that would buy a bunch of 777’s and maybe some of the intermediate ranged 330’s and sell or lease them to the partners of a virtual airline with bases in the Americas, Australasia, Asia and the Middle East. One could come up with a basic standard configuration compatible with all partners so as to facilitate rapid disposition of equipment by leasing swapping and loaning.
A virtual airline in the group would have access to equipment and destinations that cover the world without the need to overextend it’s own abilities to finance and service a giant network. It would be incumbent on each of the partners to grow its own patch while lending support and synergies to the entire group.
Absent from, (but not essential to), the group, would be a regional partner in the EU and operators to service Sth America and the African continent. Partners of such a group could cover 90% of the world with just 5 or 6 likeminded groups, rather than the 30 or so members of each of the other alliances. A small number such as that could, through joint ventures rather than just code shares, more easily overcome regulatory hurdles to more accurately control prices and schedules to achieve the ultimate synergies. Basic to any application for relief from anti cartel laws is that no degradation of service or dilution of customer choice should occur. With each partner in a small group , handling it’s own patch, this must surely be easier than the current overextended alliances. The overlapping of current alliance networks, works against them in that they cannot be seen to regulate competition. This reduces their ability to manipulate prices and services , the market must do that.
The real gold is in the equipment provision. It has been reported that Boeing have an unidentified order for 10 777’s, could this be the start, or to look at it another way the start of a new beginning.
Mr Borgetti, I doffs my lid.
SS
Last edited by scam sniffer; 8th Jun 2011 at 11:42.
Reason: layout