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
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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