To sell a route to Asia, would the Japanese govt allow it?
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To sell a route to Asia, would the Japanese govt allow it?
This question was brought up at an LEC (pilot union council)meeting today.
How about "selling" routes to Europe? Is this always a very complex process?
How about "selling" routes to Europe? Is this always a very complex process?
Join Date: Dec 2001
Location: Avondale Heights
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My understanding about "Asia" (NRT) is
that it may be very very unlikely that
should NWA and, or UA sell route
systems a la the PAA early 80's transfer
(to UA) that the structure of the route
authority would remain. Most likely the
Japanese govt. would not grant the
transfer of "originating pax pickup"
authority to the purchaser(s.) Back in
the early 80's the Japanese economy
was in much better shape and
JAL/ANA were not in a position to
handle the capacity increases. Current
times (economic & airline) would most
likely not mirror the past. I'd expect a
contingency clause in the purchase
-reference govt. approval, the
outcome of which could greatly impact
the purchase price/value of the Asia
routes. As for Europe, I don't think
much would be of value except LHR and again, govt. inclinations would
suggest a problem with transfers
given recent negotiations on air treaty
issues. Also, the dismal bookings
across the pond and lack of funds
available to most carriers for such a
purchase also adds speculation for the
scenario. If any sale were to occur
given the current times, I'd wager that
only a Cargo carrier could pull off
both the financial and regulatory
barriers that would disable the pax
carrier (at the present time.)
that it may be very very unlikely that
should NWA and, or UA sell route
systems a la the PAA early 80's transfer
(to UA) that the structure of the route
authority would remain. Most likely the
Japanese govt. would not grant the
transfer of "originating pax pickup"
authority to the purchaser(s.) Back in
the early 80's the Japanese economy
was in much better shape and
JAL/ANA were not in a position to
handle the capacity increases. Current
times (economic & airline) would most
likely not mirror the past. I'd expect a
contingency clause in the purchase
-reference govt. approval, the
outcome of which could greatly impact
the purchase price/value of the Asia
routes. As for Europe, I don't think
much would be of value except LHR and again, govt. inclinations would
suggest a problem with transfers
given recent negotiations on air treaty
issues. Also, the dismal bookings
across the pond and lack of funds
available to most carriers for such a
purchase also adds speculation for the
scenario. If any sale were to occur
given the current times, I'd wager that
only a Cargo carrier could pull off
both the financial and regulatory
barriers that would disable the pax
carrier (at the present time.)
