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UA/CO Merger: Impact On Alliances  
User currently offlineModerators From United States of America, joined Apr 2004, 511 posts, RR: 0
Posted (4 years 4 months 1 week 2 days 2 hours ago) and read 5815 times:
AIRLINERS.NET CREW
FORUM MODERATOR

The news about a possible UA/CO merger has spawned several threads, covering very detailed aspects of the transaction, and many forms of speculation. In the interest of keeping the forum organized and the discussions more cohesive, please add your posts in one of the "official" threads on the subject. You will find them in the forum index with the following titles:

Possible UA/CO Merger: Impact on Fleets & Routes
Possible UA/CO Merger: Impact on Employees
Possible UA/CO Merger: Impact on Regionals
Possible UA/CO Merger: Impact on Alliances
Possible UA/CO Merger: Impact on Airports

Please use this thread to discuss impact on Alliances. Other similar threads will be locked as duplicates and redirected to this one. Thank you.


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14 replies: All unread, jump to last
 
User currently offlineKFlyer From Sri Lanka, joined Mar 2007, 1226 posts, RR: 0
Reply 1, posted (4 years 4 months 1 week 2 days 1 hour ago) and read 5690 times:

As both are Star carriers, IMHO the biggest impact will be on OneWorld. OneWorld is already in a comparatively weaker position in the face of Star.
IMHO, OneWorld should aim at luring one of the Mid Eastern carriers towards it.



The opinions above are solely my own and do not express those of my employers or clients.
User currently offlinekiwiandrew From New Zealand, joined Jun 2005, 8556 posts, RR: 13
Reply 2, posted (4 years 4 months 1 week 2 days ago) and read 5488 times:
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Quoting KFlyer (Reply 1):
OneWorld should aim at luring one of the Mid Eastern carriers towards it.

OneWorld already has a Middle Eastern carrier , RJ .

Quoting KFlyer (Reply 1):
As both are Star carriers, IMHO the biggest impact will be on OneWorld.

Would you mind being a little more specific ? What impact would you see a merged CO/UA having on OW that they don't already have as two separate *A members ?



Moderation in all things ... including moderation ;-)
User currently offlineKFlyer From Sri Lanka, joined Mar 2007, 1226 posts, RR: 0
Reply 3, posted (4 years 4 months 1 week 2 days ago) and read 5471 times:

@kiwiandrew, I meant adding one of the Mid East big three ( EK,QR,EY ). Sorry for not being specific.

The threat to OW would come from the streamlined network of the two carriers. Let's be honest, OW has a lot to catch up, doesn't it ?
I am sorry if I seem as a Star propagandist here, which I am not.



The opinions above are solely my own and do not express those of my employers or clients.
User currently offline777ER From New Zealand, joined Dec 2003, 12114 posts, RR: 18
Reply 4, posted (4 years 4 months 1 week 2 days ago) and read 5402 times:
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FORUM MODERATOR

AA is certainly going to be the biggest looser in all of this and I wouldn't be surprised to hear or see any news of another US domestic airline joining OW (Alaska?) or AA starting a more extensive codesharing arragement.

Wonder how badly this merger would also affect US to the extent that US may consider leaving star for OW?


User currently offlineMacsog6 From Singapore, joined Jan 2010, 530 posts, RR: 0
Reply 5, posted (4 years 4 months 1 week 1 day 23 hours ago) and read 5267 times:
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Quoting KFlyer (Reply 3):
Quoting KFlyer (Reply 3):
OW has a lot to catch up, doesn't it ?

Not really. 1W does need to add a mainland Chinese carrier, but that is about it IMHO.



Sixty Plus Years of Flying! "I fly because it releases my mind from the tyranny of petty things." - Saint Ex
User currently offlineAirNiugini From Australia, joined Mar 2010, 235 posts, RR: 0
Reply 6, posted (4 years 4 months 1 week 1 day 22 hours ago) and read 5189 times:

I read on the Star Alliance website years ago when US Airways first joined that a major advantage to Star passengers is that they will allow greater coverage to to Caribbean and Central America etc etc... But now that CO has joined maybe they overlap somewhat?

I know that US Airways has more assets then just the Caribbean network to offer an alliance, but is Star still the best alliance for US?

Cheers


User currently offlineCOEI2007 From Vanuatu, joined Jan 2007, 1912 posts, RR: 5
Reply 7, posted (4 years 4 months 6 days 9 hours ago) and read 4410 times:

I wonder what would happen to the EI-UA joint venture?

User currently offlineDelimit From United States of America, joined Jan 2009, 1508 posts, RR: 2
Reply 8, posted (4 years 4 months 6 days 9 hours ago) and read 4372 times:

As they're both in Star...very little. It would probably serve to integrate CO a little faster, as UA has been in the alliance far longer. Other than that...nothing I can really think of, honestly.

User currently offlineAIRBORNE1 From United States of America, joined Feb 2008, 99 posts, RR: 0
Reply 9, posted (4 years 4 months 5 days 15 hours ago) and read 4070 times:

Let's hope the joint Aer Lingus and United is killed by the merge of CO..

User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 60
Reply 10, posted (4 years 4 months 5 days 15 hours ago) and read 4036 times:

Quoting KFlyer (Reply 3):
@kiwiandrew, I meant adding one of the Mid East big three ( EK,QR,EY ). Sorry for not being specific.

EY and GF codeshare extensively with AA and EY codeshares extensively with QF as well. I wouldn't be surprised if EY eventually purchases a "minority share" in QF (pure hypothesis on my part). Add to the codeshare with RJ and AA/OneWorld does do a decent job in the Middle East.

That being said, OneWorld would be smart to lure both EY and GF into OneWorld.

Quoting 777ER (Reply 4):
AA is certainly going to be the biggest looser in all of this and I wouldn't be surprised to hear or see any news of another US domestic airline joining OW (Alaska?) or AA starting a more extensive codesharing arragement.

How is a combined CO/UA going to make AA the "biggest loser"?



"Up the Irons!"
User currently offlinekiwiandrew From New Zealand, joined Jun 2005, 8556 posts, RR: 13
Reply 11, posted (4 years 4 months 5 days 11 hours ago) and read 3808 times:
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Quoting Jacobin777 (Reply 10):
That being said, OneWorld would be smart to lure both EY and GF into OneWorld.

Why ? The Gulf does not have that big a population base , OW only has two carriers (AA MX ) to cover the whole of North America and two ( CX JL ) , with a third ( IT ) on the way , to cover Asia so why would OW want two Gulf based carriers? It seems a bit of overkill to me .



Moderation in all things ... including moderation ;-)
User currently offlineAmricanShamrok From Ireland, joined May 2008, 2890 posts, RR: 0
Reply 12, posted (4 years 4 months 5 days 11 hours ago) and read 3763 times:

Quoting AIRBORNE1 (Reply 9):
Let's hope the joint Aer Lingus and United is killed by the merge of CO..

I agree, I think EI should focus on their Irish operations and concentrate on their growth to their home country. In saying that though, the EI/UA IAD-MAD is apparantly doing well...



Shannon-Chicago
User currently offlineCubsrule From United States of America, joined May 2004, 22926 posts, RR: 20
Reply 13, posted (4 years 4 months 5 days 9 hours ago) and read 3577 times:

Quoting AirNiugini (Reply 6):
but is Star still the best alliance for US?

I think so. Star gives US the middle of the country and Asia, two areas where US' network is quite weak (or nonexistent in Asia's case).

The more interesting question for me is what US brings to each alliance. Here's how I see it

Star: Caribbean network, DCA, CLT

Oneworld: PHL, DCA, CLT, PHX to an extent

Skyteam: PHL, DCA, PHX

It's tough to weigh those three - it may be that US would benefit another alliance more, but that's not clear to me.



I can't decide whether I miss the tulip or the bowling shoe more
User currently offlineETinCaribe From Ethiopia, joined Dec 2009, 731 posts, RR: 0
Reply 14, posted (4 years 4 months 5 days 7 hours ago) and read 3438 times:

Quoting KFlyer (Reply 3):
The threat to OW would come from the streamlined network of the two carriers. Let's be honest, OW has a lot to catch up, doesn't it ?

I am a *A fan as well, but mergers in any industry of two large companies is anything but easy to successfully implement. AA could use that to its advantage, though I know that I am probably spinning  


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