May 20th, 2009
07:42 PM GMT
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Today Delta airlines along with Air France/KLM announced their global joint venture. Sharing revenues and costs – effectively making it one airline in much of the world.

The press release trumpted the benefits to consumers – I am not sure I immediately agree.

The airlines are already members of SKyteam which boasts seamless travel. So why do they need to get into bed together and operate as one airline ?

We know this is really all about maximizing revenue and minimizing costs. On some key routes from the US to Amsterdam and Paris there will be just about zero network wide competition. Can this really be good for consumers ?

I am realist and know that from the airlines point of view this makes perfect sense

We are rapidly moving to the era where individual airlines won’t matter – in future we will fly Star, Oneworld or SKyteam. This is what this deal is really all about. The sooner regulators and airlines get honest about this and level the playing field the better for all- then true competition can begin.

Here are some of your views

 

darrenmak@richardquest Star Alliance has the most airlines, most destinations, and good First Class Award Availability. Flying them thru LHR 2day!

Lauratheexpat@richardquest I've given up on the whole thing – I never can seem to use my frequent flyer miles for anything other than duty-free!

kzamri@richardquest what's important to the airlines is the bottomline. In terms of fares I don't think there will be drastic changes

FabreuJ@richardquest Specific anti-trust laws should be enacted and enforced to ensure fair competition between airlines.

 hgmartinezrichardquest Alliances can work well for the fflyer, for me I fly American(1wrld) for business and redeem on Cathay or Qantas for leisure.@

 LauraMac09richardquest Now, the consumer is the company's competitor!@

 Mighty_Mole@richardquest You assume competition is fixed. There will always be new competition. Look at JetBLue and Virgin for your fresh faces.

 RigilKentaurusrichardquest the old European carriers are terrible: KLM/Air France/ Lufthansa@

 QueenLunte23@richardquest like those hudled together antarctict penguins they are trying to survive 2getha...

 JoburgViennarichardquest And isn't the concentration of capital what Marx predicted in the late 19th century. :-)@

 hgmartinezrichardquest Service Carrier Australasia area. Star=Mass market due to having so many members. Skyteam= Somewhere between!@

 jamesfarrarRT @richardquest: NO. Alliances happen because M&A cannot. mrkt consolidation. Consumers are placated with a uniform mileage programme

 01theone@richardquest Good question -I think it will lead to a 2 class supply of services -very cheap e.g. JetBlue VS. high class like Etihad, etc.

WoodsonHawk @richardquest How can you beat a monopoly? We passengers will not win.

Malamoucha@richardquest it's a no win situation. they have to bed each other to survive. and we as the passenger pay in the end



May 20th, 2009
02:59 PM GMT
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Just read an excellent economic report from HSBC about what will happen after the recovery arrives. Fundamental point is that some governments (like the US and UK) have borrowed so much to get us out of the mess that we will be paying it back for a very long time.

Numerous scenarios are put forward – all involve times and period of either higher taxes, lower spending or both. It is an admission of what we all know in our hearts of hearts – that the payback from this crises will be long and painful.

We are covering this tonight on QMB and I am going to make this my Twitter question tonight.

It’s sad to say but if we had saved more in the good years we wouldn’t be in such a horrible state once the recession is over.



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