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El Al To Found 4th Global Airline Alliance  
User currently offlinecastroprauxel From Germany, joined Sep 2008, 467 posts, RR: 0
Posted (4 years 1 week 6 days 18 hours ago) and read 22437 times:

Surprising but true: Israel's leading newspaper publishes today that LY is working on founding a 4th global airline alliance to compete with Star, OneWorld and Skyteam. The new alliance will be called "We", and the final agreement is to be signed within the next 90 days.
Apparently, after unsuccesful attempts to get into one of the exiting alliances, LY decided to found a new airline alliance comprising of medium and small sized airlines that otherwise would probably not find themselves in an alliance. The newspaper reports that LY has already signed a memorandum of understanding with VV, U8 and UT, and plan to incorporate some 20 airlines in the alliance within a year, including european and south american airlines, with which LY is currently negotiating.

The article was confirmed by LY and the Israeli ministry of transportation (unfortunately, a link in the english language is yet to be found).

44 replies: All unread, showing first 25:
 
User currently offlineUAL777UK From United Kingdom, joined Nov 2005, 3356 posts, RR: 1
Reply 1, posted (4 years 1 week 6 days 18 hours ago) and read 22418 times:

Very interesting, but who is going to join them, there is not a lot by way of quality airlines out there now that are not already tied into an alliance. For that reasdon I see this being a very restricted alliance in terms of its depth and breadth of what it will offer the consumer.

I will watch with interest.


User currently offlinepoint2point From United States of America, joined Mar 2010, 2757 posts, RR: 1
Reply 2, posted (4 years 1 week 6 days 17 hours ago) and read 22211 times:

Quoting UAL777UK (Reply 1):
I will watch with interest.

Yes, if anybody can make something like this work, I'd put my money on the Isrealis.


User currently offlineAA1818 From Trinidad and Tobago, joined Feb 2006, 3433 posts, RR: 4
Reply 3, posted (4 years 1 week 6 days 17 hours ago) and read 22027 times:

Quoting castroprauxel (Thread starter):
LY has already signed a memorandum of understanding with VV, U8 and UT

EL AL don't even codeshare with any of those airlines at the moment. Additionally, so far it seems like a very limited regional alliance. Russia, Armeina, Ukraine and Israel- there's not much geographic separation- though they may fill a nice niche that the other alliances don't fill.

Quoting castroprauxel (Thread starter):
20 airlines

Maybe US Air could join them! hahaha   

AA1818



“The moment you doubt whether you can fly, you cease for ever to be able to do it.” J.M. Barrie (Peter Pan)
User currently offlinecastroprauxel From Germany, joined Sep 2008, 467 posts, RR: 0
Reply 4, posted (4 years 1 week 6 days 17 hours ago) and read 21976 times:

No reason it won't work. It will surely not be a meaningful competition to the larger alliances, but it will give those smaller airlines some more substance and visibility. In my view, in 10 years from now an airline that will not be in an alliance will have a really rough time to keep going. The future of civil aviation is in airline alliances.

User currently offlineGiancavia From Vatican City, joined Feb 2010, 1344 posts, RR: 0
Reply 5, posted (4 years 1 week 6 days 17 hours ago) and read 21861 times:

Cool .. could have come up with a better name though lol. "we" hmmm..

User currently offlineLHRlocal From United Kingdom, joined Jan 2008, 268 posts, RR: 0
Reply 6, posted (4 years 1 week 6 days 17 hours ago) and read 21813 times:

Wasnt Richard Branson looking at starting up an alliance? Maybe they could all join together.

User currently offlineMadDogJT8D From United States of America, joined Oct 2009, 397 posts, RR: 1
Reply 7, posted (4 years 1 week 6 days 16 hours ago) and read 21566 times:

Quoting LHRlocal (Reply 6):
Wasnt Richard Branson looking at starting up an alliance? Maybe they could all join together.

I think an LY & VS/VX alliance would work really well!


User currently offlineBlueSky1976 From Poland, joined Jul 2004, 1876 posts, RR: 4
Reply 8, posted (4 years 1 week 6 days 16 hours ago) and read 21484 times:

Sorry to be a pessimist, but this has "Qualiflyer" written all over it.


STOP TERRORRUSSIA!!!
User currently offlinehotplane From UK - England, joined Jul 2006, 1038 posts, RR: 0
Reply 9, posted (4 years 1 week 6 days 16 hours ago) and read 21270 times:

flightglobal.com reports the name will be 'Eastern-Western'.


?
User currently offlineYULWinterSkies From United States of America, joined Jun 2005, 2178 posts, RR: 5
Reply 10, posted (4 years 1 week 6 days 16 hours ago) and read 21271 times:

Quoting UAL777UK (Reply 1):
there is not a lot by way of quality airlines out there now that are not already tied into an alliance.

VS, although it is partly owned by SQ (which somewhat naturally ties them to *A), is a good airline that is in no alliance. FI is another good independent airline as well. And we know that belonging to an alliance is not something set in stone, ailines have left alliances for others before, MX and CO did it for instance, so in theory any airline may join one day, if they think that LY's new alliance is better for them than their current one.
I can see US joining, whose role in *A in NAm will become uncomfortable once the UA-CO merger is finalized. Their 'quality' may be questioned by some, but at least there is room for improvement! And I'm correct saying they already fly to TLV, right?
Of course most Middle Eastern carriers are independent, but obviously they won't go together with LY.
In fact, this could one main reason why LY is in no alliance. Existing alliances have much more to win by gaining one of the big Middle Eastern carriers than gaining LY, and then having LY might be a no-go for some Middle-Eastern airlines to join. Similar to why many intl carriers stopped flying to TPE so that they could gain access to the Chinese market. In fact, speaking of Taiwan, there are some non-allied airlines there too...
Yep, no doubt cleaning up diplomatic relationships comes first, then only later good productive business can come up. They'd better work on that before focusing on LY too much.



When I doubt... go running!
User currently offlinecastroprauxel From Germany, joined Sep 2008, 467 posts, RR: 0
Reply 11, posted (4 years 1 week 6 days 15 hours ago) and read 20982 times:

Quoting hotplane (Reply 10):
flightglobal.com reports the name will be 'Eastern-Western'

WE = Western-Eastern


User currently offlinediscoverCSG From United States of America, joined Jan 2007, 831 posts, RR: 0
Reply 12, posted (4 years 1 week 6 days 15 hours ago) and read 20949 times:

Quoting hotplane (Reply 10):
flightglobal.com reports the name will be 'Eastern-Western'.
Quoting castroprauxel (Thread starter):
The new alliance will be called "We"

These data seem to be in conflict, except that if "Eastern-Western" becomes "Western-Eastern", it can be abbreviated "we".


User currently offlinemcmax From United States of America, joined Dec 2005, 304 posts, RR: 0
Reply 13, posted (4 years 1 week 6 days 14 hours ago) and read 20399 times:

Quoting discoverCSG (Reply 13):
These data seem to be in conflict, except that if "Eastern-Western" becomes "Western-Eastern", it can be abbreviated "we".

Or, if it's Eastern-Western, it can be abbreviated as EW.  



De minimis non curat lex tamen ego curao
User currently offlinerunway23 From US Minor Outlying Islands, joined Jan 2005, 2192 posts, RR: 35
Reply 14, posted (4 years 1 week 6 days 14 hours ago) and read 20394 times:

Quoting discoverCSG (Reply 13):
These data seem to be in conflict, except that if "Eastern-Western" becomes "Western-Eastern", it can be abbreviated "we".

In the long run this thing will be more likely remembered as Ew.


User currently offlineoa260 From Ireland, joined Nov 2006, 26949 posts, RR: 58
Reply 15, posted (4 years 1 week 6 days 14 hours ago) and read 20228 times:

Interesting idea even if the name is a bit crappy. Dont think it will ever be anything more than a small ''partnership'' though.

User currently offlineburnsie28 From United States of America, joined Aug 2004, 7539 posts, RR: 8
Reply 16, posted (4 years 1 week 6 days 13 hours ago) and read 19053 times:

Quoting BlueSky1976 (Reply 8):
Sorry to be a pessimist, but this has "Qualiflyer" written all over it.

Agreed along with the "Wings Alliance"



"Some People Just Know How To Fly"- Best slogan ever, RIP NW 1926-2009
User currently offlineBlueman87 From United States of America, joined Aug 2009, 535 posts, RR: 0
Reply 17, posted (4 years 1 week 6 days 12 hours ago) and read 18723 times:

maybe jetBlue Airways


B6 T5 JFK DL T2/3 JFK
User currently offlinemysterzip From United States of America, joined Jul 2008, 167 posts, RR: 0
Reply 18, posted (4 years 1 week 6 days 12 hours ago) and read 18873 times:

I don't think it's going to happen, quite honestly. It does have Wings written all over it. It's a nice idea, but maybe El Al should take a page out of Alaska's book. You don't have to part of an alliance to be a good, respectable airline that pleases its customers and shareholders.

User currently offlineyellowtail From United States of America, joined Jun 2005, 6122 posts, RR: 2
Reply 19, posted (4 years 1 week 6 days 12 hours ago) and read 18492 times:

Quoting mysterzip (Reply 27):
I don't think it's going to happen, quite honestly. It does have Wings written all over it. It's a nice idea, but maybe El Al should take a page out of Alaska's book. You don't have to part of an alliance to be a good, respectable airline that pleases its customers and shareholders.

But you do have to be a codeshare slut!



When in doubt, hold on to your altitude. No-one has ever collided with the sky.
User currently offlineBlueJuice From United States of America, joined Jun 2010, 244 posts, RR: 0
Reply 20, posted (4 years 1 week 6 days 11 hours ago) and read 17836 times:

Quoting Blueman87 (Reply 25):

B6 is getting really cozy with AA lately. In all likelihood they will be a part of oneworld.


User currently offlineByrdluvs747 From United States of America, joined Jul 2004, 2358 posts, RR: 1
Reply 21, posted (4 years 1 week 6 days 11 hours ago) and read 17733 times:

Quoting castroprauxel (Thread starter):
Apparently, after unsuccesful attempts to get into one of the exiting alliances

My question is when did LY announce its intention to join any alliance?



The 747: The hands who designed it were guided by god.
User currently offlineAirxliban From Lebanon, joined Oct 2003, 4511 posts, RR: 53
Reply 22, posted (4 years 1 week 6 days 11 hours ago) and read 17764 times:

I can see El Al increasing the extent to which it cooperates with other airlines, but I can't see them possibly starting an alliance that could compete with the 3 majors. El Al is in a bit of a hard position, it can really only specialise in carrying people to and from Israel. It can offer almost no regional connectivity to any of its partner airlines nor is it particularly world class in any operational measures (except security) that would provide cost saving/revenue enhancing benefits to other airlines.

On top of that, 75% of the market is already snapped up by other alliances. Of the 25% that isn't, most of the airlines don't want to join alliances.

On top of that, I think El Al doesn't even operate on the Sabbath, which makes it less likely that you could consolidate a lot of back office functions for the partners in Israel given its lower cost environment.

On top of that, El Al isn't exactly known for its incredible product...so this alliance would probably compete on price (or security...that could potentially be an angle)

On top of that, El Al as an entity owned by the government of Israel is going to have a hard time shaking off the fact that many people see it as an instrument of the state. Given the choice between flying on LY and another airline, many people would pay more to fly on another airline purely on the basis that they do not want to contribute financially to the state of Israel - this is relevant for connecting traffic.

Without beating the dead horse, El Al could certainly code share more and increase cooperation with other airlines, that is a great idea and I hope it works for them. But I highly doubt anything that resembles a major world airline alliance is going to emerge out of this.



PARIS, FRANCE...THE BEIRUT OF EUROPE.
User currently onlinewilld From United Kingdom, joined Nov 2008, 238 posts, RR: 0
Reply 23, posted (4 years 1 week 6 days 11 hours ago) and read 17461 times:

Wondered how far I could get in this thread before VS cropped up.

VS is 49% owned by SQ and as far as we know (read nothing to the contray has been writen) SQ could very well have a clause in the original agreement stating that VS will not join any alliance other than Star. May seem a strange clause but then again SQ was quite forceful in the using of the Virgin Brand...hence V Australia, Pacific Blue etc.


User currently offlinerangercarp From United States of America, joined Nov 2009, 143 posts, RR: 0
Reply 24, posted (4 years 1 week 6 days 11 hours ago) and read 17417 times:

For quite some time I have felt there was room for a 4th alliance, though I expected SRB and the Virgins to be behind it. With the announcements last week of greater partnerships between the Virgin airlines, they may be heading in that direction. If El Al could get the Virgin group on board it would add a lot of credibility to their endeavor.


iwgbtp!
25 Post contains images TWFirst : My vote would be to name it TWA... Third World Alliance
26 GSPSPOT : I would think the inverse would be quite the coup. Let businesses show they can cooperate, even if governments refuse to! (Yes, I do know that many o
27 ETinCaribe : Ok, I read most of the posts, but I really fail to see what this new alliance would accomplish that the other 3 cannot - that 's for both the member c
28 Globeex : Oh gosh. I'm sorry, but I really can't see that working out. There are just soooooooooo many thinks that should tell one that this won't be a succeful
29 Post contains images todaReisinger : I have rarely read something as weird as this kind of desperate alliance...... And indeed, as someone has already mentioned, it shows some troubling s
30 vv701 : How would all of the Islamic countries react to an alliance led by or created by LY or to one simply with LY as a member? When I was travelling regula
31 danworldflyer : Very interesting indeed. I have read the threads and comments and have to agree with many of them. We need to remember that El Al always had three dis
32 flypba : who are VV, U8 and UT
33 vv701 : Aerosvit, Armavia and UTair!
34 mysterzip : Uh - you forget about LH's stake in jetBlue. JetBlue said they're open to any alliance. One can only speculate what it may be. It probably won't be w
35 Byrdluvs747 : Which apparently amounts to zilch! LH mgmt was none too happy when B6 announced their cooperation with AA. Did B6 reverse their decision? No. B6 will
36 beeweel15 : Seriously who would want to that alliance. More airlines would join an alliance started by Virgin than EL AL.
37 Styles9002 : Where can I invest some funds in this venture?
38 lychemsa : EL AL service in Y (I don't know C or F) beats all US airlines and most European ones. EL AL is not owned by the State. It is private.
39 Byrdluvs747 : LY could emulate the AS model of "sleeping with everyone" and unofficially join OW. Based on their route map they could potentially partner with the f
40 ju068 : What about airBaltic (BT)? They seem to be doing quite ok and they have not shown any interest in joining an alliance so far... They have a great cove
41 Burkhard : Add those who do not want the extreme security procedures and terror thread... Luxair might fit, and would be a major player in that alliance :lol:
42 SolarFlyer22 : I think IranAir is looking for an alliance. You know its amazing how many Americans cannot spell Israel correctly despite their government's overwhel
43 MBJ2000 : Carpatair (V3) from Romania could also be interested I assume. They developed a nice network in middle/eastern Europe.
44 SA7700 : Unfortunately this thread has veered off-topic, beyond a salvageable point, due to various forum rule violations. Rather than culling the entire threa
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