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Is It Wrong For The Star Alliance To Get So Big?  
User currently offlineB777A340Fan From United States of America, joined Oct 2005, 757 posts, RR: 0
Posted (6 years 8 months 2 weeks 2 days 23 hours ago) and read 4813 times:

Don't know if this concerns the US, EU, or anywhere else, but isn't the Star Alliance getting too strong, creating almost a monopoly? I'm not sure who exactly would really enforce that.... Was wondering.

10 replies: All unread, jump to last
 
User currently offlineStylo777 From Germany, joined Feb 2006, 2948 posts, RR: 12
Reply 1, posted (6 years 8 months 2 weeks 2 days 23 hours ago) and read 4791 times:

they can't getting a monopolist when OneWorld and SkyTeam exists, because they aren't that big, but they include a lot of major global airlines like BA, AA, AF, CX, QF, DL and many many more...

User currently offlineJFK787NYC From United States of America, joined Apr 2007, 812 posts, RR: 2
Reply 2, posted (6 years 8 months 2 weeks 2 days 22 hours ago) and read 4690 times:

Depends on where you live, I live in New York and in New York if you do business in Europe and not in London you are a full blown SkyTeam member. Plus, the flights from USA-TLV nonstop are virtually SkyTeam Monolplized

User currently offlineZL From , joined Dec 1969, posts, RR:
Reply 3, posted (6 years 8 months 2 weeks 2 days 21 hours ago) and read 4619 times:

Quoting Stylo777 (Reply 1):
BA, AA, AF, CX, QF, DL

 Confused


User currently offlineBoeing77W From United Kingdom, joined May 2007, 203 posts, RR: 0
Reply 4, posted (6 years 8 months 2 weeks 2 days 21 hours ago) and read 4538 times:

Quoting ZL (Reply 3):

I hazard a guess that Stylo777 meant BA, AA, AF, CX, QF, DL are either in Sky Team or Oneworld, basically saying that although neither of these "competitors" to Star Alliance are particularly big they have some very large airlines within them


User currently offlineCommavia From United States of America, joined Apr 2005, 11387 posts, RR: 62
Reply 5, posted (6 years 8 months 2 weeks 2 days 15 hours ago) and read 4293 times:

Quoting B777A340Fan (Thread starter):
Don't know if this concerns the US, EU, or anywhere else, but isn't the Star Alliance getting too strong, creating almost a monopoly?

Star is hardly a monopoly, nor will it ever be. As others have said, it still represents a small minority of overall global air traffic, and there are two other humongous competing alliances to keep them in check. I think that most don't have any problem with Star growing bigger and bigger, per se, but I think the concerns raised in some quarters relate to quality. I think there are some who feel that with Star's continual march for growth, they may have lowered the standards a bit in terms of the quality - both service for customers and companies' finances - of the airlines they recruit. I'm not necessarily saying that's true, but I've heard the point raised here on A.net and elsewhere.


User currently offlineRDUDDJI From Lesotho, joined Jun 2004, 1447 posts, RR: 3
Reply 6, posted (6 years 8 months 2 weeks 2 days 14 hours ago) and read 4237 times:

Quoting Commavia (Reply 5):
Star is hardly a monopoly, nor will it ever be. As others have said, it still represents a small minority of overall global air traffic, and there are two other humongous competing alliances to keep them in check. I think that most don't have any problem with Star growing bigger and bigger, per se, but I think the concerns raised in some quarters relate to quality. I think there are some who feel that with Star's continual march for growth, they may have lowered the standards a bit in terms of the quality - both service for customers and companies' finances - of the airlines they recruit. I'm not necessarily saying that's true, but I've heard the point raised here on A.net and elsewhere.

I agree with most of what you said, especially about CS degrading (that is a trend everywhere, but most notably in the U.S. where cost management is a way of life).

However, I think at some point, there may need to be some kind of alliance regulation. There are certain markets and areas that are somewhat monopolized by certain alliances.



Sometimes we don't realize the good times when we're in them
User currently offlineCommavia From United States of America, joined Apr 2005, 11387 posts, RR: 62
Reply 7, posted (6 years 8 months 2 weeks 2 days 14 hours ago) and read 4226 times:

Quoting RDUDDJI (Reply 6):
However, I think at some point, there may need to be some kind of alliance regulation. There are certain markets and areas that are somewhat monopolized by certain alliances.

But that's the nature of all competition. You can't regulate more service for a particularly market if that market isn't able to sustain competitive service by competing airlines, alliances, or whatever. Beyond that, I'm not sure how successful any regulation could possibly be against alliances - at least in the abstract - since they don't really conform to any strict national boundaries or fall cleanly and neatly under any particular competitive watchdog's jurisdiction. Which regulatory body, for example, would regulate alliances? The U.S. DOJ? ECJ? But how, for example, could the DOJ claim jurisdiction over, say, Singapore Airlines? Or the ECJ regulate the air service of, say, LAN Chile? And even if they tried to regulate the alliances overall, as collective alliance-based organizations, therein too lies problems: how do you regulate something that doesn't actually operate anything? Sure, Canadian regulatory oversight bodies would have physical jurisdiction over, for example, the oneworld Management Company - which is headquartered in Vancouver - but what is there to regulate? The management company based there is just an administrative office with 20-30 employees. It doesn't set any prices, compete or not compete in any markets, schedule any flights, etc. So what would they regulate?


User currently offline777STL From United States of America, joined Dec 2004, 3537 posts, RR: 3
Reply 8, posted (6 years 8 months 2 weeks 2 days 14 hours ago) and read 4147 times:

Ehh they're worldwide alliances. Sure, they can continue to get bigger, but they will get to a point where it merely becomes redundant. Afterall, how many European, African, Oceania, US, and Asian airlines do you need before it become redundant? Unless one alliance has all airlines in one geographic area, I fail to see how it would become monopolistic. And that surely hasn't and won't happen.


PHX based
User currently offlineZak From Greenland, joined Sep 2003, 1993 posts, RR: 8
Reply 9, posted (6 years 8 months 2 weeks 2 days 12 hours ago) and read 4087 times:

no worries, once UA folds, they will be a bit slimmer!


10=2
User currently offlineFlyingcat From United States of America, joined May 2007, 538 posts, RR: 0
Reply 10, posted (6 years 8 months 2 weeks 2 days 12 hours ago) and read 4060 times:

The larger the alliance the more certain members will grumble about being overlooked and leave.

MX was the last big one.

IB and AZ are both up in the air due to possible purchase.

BD is perhaps most valuable. So many LHR slots yet Bisop has not been able to consistently deliver profits. Maybe another airline can.


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