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Logic Between JJ And Star  
User currently offlineRafabozzolla From Brazil, joined Apr 2000, 1184 posts, RR: 0
Posted (5 years 3 months 1 week 4 days 8 hours ago) and read 1711 times:

Reading the thread about the downgrading of SA)">UA's operation at MIA and the lack of domestic connectivity there for JJ's pax, I started to think what is the logic between JJ joining Star instead of SA)">OW.

SA)">OW
- Would provide strong feed in SA through LAN (although they do code-share).
- Strong North American connectivity through JFK and (especially) MIA, cities TAM already has quite well covered from both GRU and GIG.
- Madrid is geographically well located for BR-Europe connections with flights from both GRU and GIG. Even London works well for nothern Europe, being so further west as it is. Not to mention it is quite high yielding, and BA is offering non-stops to GIG.
- Even Japan and Australia would be relatively well covered through LA (SCL), QF (EZE) and JL (JFK).

Star
- Very limited connectivity on JJ's stations. Major hubs of IAD, ORD and YYZ only served by partners, and only IAD has non-stop from GIG.
- In Europe FRA is the sole major hub served by Star and TAM but it's ill placed for Brazil-Europe connection (LOADS of back tracking needed). All of LH hubs (FRA, MUC and ZRH) are only served from GRU.
The only part of the equation that makes some sense to me is the alliance with TP, but not all BR-PT routes are code-shared and LIS offers limited connectivity due to relative small airport size.

So...
Can anyone put some light into the matter?

7 replies: All unread, jump to last
 
User currently offlineHiflyer From United States of America, joined Nov 2004, 2153 posts, RR: 3
Reply 1, posted (5 years 3 months 1 week 4 days 8 hours ago) and read 1697 times:

JJ had been working with AA...however AA has been perceived (reading press from those areas) as being a predator on latin routes to further itself...TAM moving towards Star after the 'fall' of RG may be one reaction to that perception. LAN has colocated at MIA into the Star Terminal (J) as well....opposite side of the airfield from AA....and is providing a good feed to both US and UA for what it is worth.

User currently offlineAirbazar From United States of America, joined Sep 2003, 7871 posts, RR: 10
Reply 2, posted (5 years 3 months 1 week 4 days 7 hours ago) and read 1652 times:



Quoting Rafabozzolla (Thread starter):
The only part of the equation that makes some sense to me is the alliance with TP, but not all BR-PT routes are code-shared and LIS offers limited connectivity due to relative small airport size.

Code share is almost irrelevant if both airlines are *A. Look at SQ. Hardly any codeshare with anyone. You can still book your trip on both airlines regardless of whether there is a codeshare or not. And if it is true that LIS offers linited connectivity when compared to the super hubs of FRA and MUC, TAP serves just about every major European city from LIS.
Regarding the US, I think TAM is trying to maximize yields by flying routes where they have little *A competition. Obviously they feel that O&D traffic alone can keep their US operations going strong.


User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 3, posted (5 years 3 months 1 week 4 days 7 hours ago) and read 1617 times:



Quoting Hiflyer (Reply 1):
JJ had been working with AA...however AA has been perceived (reading press from those areas) as being a predator on latin routes to further itself...



Quoting Airbazar (Reply 2):
Regarding the US, I think TAM is trying to maximize yields by flying routes where they have little *A competition.

I agree. Star is the alliance which offer "less direct competition" for TAM operations and therefore more opportunities and was the favourite alliance partner.

Also important to take into account that AA helped TAM to developed the MIA hub while AF helped TAM to set foot in CDG, it was just natural for TAM now to "betray" their partners and join LH's FRA hub so as to continue its international expansion. The US-Brazil traffic is heavily concentrated on MIA and JFK, both destinations are well covered by TAM, so AA would not add much anyway.

Rgs,


User currently offlineRafabozzolla From Brazil, joined Apr 2000, 1184 posts, RR: 0
Reply 4, posted (5 years 3 months 1 week 3 days 19 hours ago) and read 1489 times:

Joining an alliance to minimize competition rather than maximize synergies? That is some twisted logic!

User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 5, posted (5 years 3 months 1 week 3 days 18 hours ago) and read 1458 times:



Quoting Rafabozzolla (Reply 4):
Joining an alliance to minimize competition rather than maximize synergies? That is some twisted logic!

In my opinion is seems the natural logic. Why do you think RG was already a partner airline of Star? Star offers the best strategy for a Brazilian carrier, more opportunities and spill-over effects.

Rgs,


User currently offlineJoFMO From Germany, joined Jul 2004, 2211 posts, RR: 0
Reply 6, posted (5 years 3 months 1 week 3 days 13 hours ago) and read 1369 times:

There is not really so much backtracking for TAM from FRA once you consider that they fly to CDG, MAD, and LHR by themselves. Spain is covered quite well by TP and backtracking to Bordeaux or Nice should be too much of an issue.
TAM's strategy in Europe is to fly to most major markets by themselves and for every other secondary market backtracking from FRA is not too much of an issue.

In terms of America it seems to be the same. The cover the main markets MIA and NYC by themselves without much competition form inside STAR. Connectiions to anywhere else need to be done via codeshares on UA and CO via IAD and IAH. But both hubs are not ideal for markets in the south-east USA. At least for some Florida markets CO should offer codeshares via MIA.


User currently offlineAirbazar From United States of America, joined Sep 2003, 7871 posts, RR: 10
Reply 7, posted (5 years 3 months 1 week 3 days 12 hours ago) and read 1328 times:



Quoting JoFMO (Reply 6):
TAM's strategy in Europe is to fly to most major markets by themselves and for every other secondary market backtracking from FRA is not too much of an issue.

FRA not only gives them intra-Europe access but it gives them access to Asia which they still don't fly to. That's really the key for FRA.


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