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Re United/Star Alliance: Industry Rumors About AA  
User currently offlineJohnnybgoode From Germany, joined Jan 2001, 2187 posts, RR: 6
Posted (13 years 5 months 4 weeks 1 day 20 hours ago) and read 2700 times:

first of all, German press reports that LH is not yet ready to provide financial assistance to UA.
LH is committed to do so if UA meets certain requirements. there will be no money if UA doesn´t receive the federal loan of $1.8billion or it files for Chapter 11.

according to Wolfgang Mayrhuber, who will probably become the new LH CEO in mid-2003,
the airline will not “donate” money, but lend money to UA, and only if LH receives securities (e.g. engines, aircraft).

in addition, the article mentions that there already industry rumors about LH wanting to replace UA by AA, if UA would not make it. Mayrhuber has dismissed there rumors, “Such a move wouldn´t make any sense”.


I was thinking about this scenario for quite a while. although AA is a major player in oneworld, we all know that it is not allowed to cooperate with BA as they would like to.
I know that AA has very tight agreements with most of its alliance partners, but due to the importance of the transatlantic market, I would be surprised if this scenario did not come up at AA´s and BA´s headquarters, since AA could probably gain more from an alliance with LH than BA (at least of today), imho.

still, I´m aware that such a close cooperation with strong mutual benefits for UA and LH could not be replaced by AA in a short time. but if UA goes bust, and I certainly don´t want that, there must be sought for alternatives.

I would like to emphasize that I don´t want another “QF will quit oneworld Star / LA will join Star” thread which are based mainly on rumors and wishful thinking, no offence.
this is a rather unlikely scenario but worthwile to discuss it.

I would like to exploit the idea of this very interesting situation and I would like you to join in with your comments and ideas.

for further info, please, take a look at the press release (German only)



If only pure sweetness was offered, why's this bitter taste left in my mouth.
6 replies: All unread, jump to last
User currently offlineGodbless From Sweden, joined Apr 2000, 2753 posts, RR: 15
Reply 1, posted (13 years 5 months 4 weeks 1 day 20 hours ago) and read 2669 times:

I can rather see LH trying to get closer to US and since they don't have a network such as UA at ORD or DEN LH adds more US destinations (PDX,...).
AA would really be a hard cookie but not impossible.


User currently offlineClipper471 From United States of America, joined Jan 2002, 726 posts, RR: 0
Reply 2, posted (13 years 5 months 4 weeks 1 day 15 hours ago) and read 2551 times:

I don't believe QF will quit oneworld as well.

As far as LH helping UA... I'd wait and see whether UA gets approved for the loan guarantee if I were LH.

User currently offline747firstclass From , joined Dec 1969, posts, RR:
Reply 3, posted (13 years 5 months 4 weeks 1 day 15 hours ago) and read 2548 times:

Could this also be "disinformation" to put pressure on BA to do it has to do to nbe able to cooperate with AA as UA and LH have so far? Like US/UK openskies?

User currently offlineBlink182 From United States of America, joined Oct 1999, 5499 posts, RR: 14
Reply 4, posted (13 years 5 months 4 weeks 1 day 15 hours ago) and read 2542 times:

Why don't the two alliances just merge and become Starworld?

I've said this for LAN Chile and Qantas, and I'll say this for AA, I don't see it happening. You are only pinpointing one failed example in this alliance, BA, and as it is, they have reapplied to the US DOT. AA has made strong efforts, and for the most part, deepened their ties with other oneworld carriers, heck, Qantas and AA are pretty much NW/KL in terms of how close the two airlines are. With all the efforts AA has made with partners, I don't see it happening.

What about LH joining oneworld? Heck, Star has every other european airline to make up for LH's presence.


Give me a break, I created this username when I was a kid...
User currently offlineFutureFO From Ireland, joined Oct 2001, 3132 posts, RR: 19
Reply 5, posted (13 years 5 months 4 weeks 1 day 13 hours ago) and read 2431 times:

I also believe that the only benefit for AA to join Star would be a large South USA including the MIA and DFW hubs but the fact that AA and BA have been working for AntiTrust immunity that BA and AA would not leave OneWorld.

I Don't know where I am anymore
User currently offlineJohnnybgoode From Germany, joined Jan 2001, 2187 posts, RR: 6
Reply 6, posted (13 years 5 months 4 weeks 19 hours ago) and read 2207 times:

as i pointed out in my initial post, i had hoped that people read my starter carefully.
as so many others of this board, i´m sick of all these posts about airlines switching from star to oneworld, or vice versa and i find it highly unlikely as well that anything like that will happen in the near future. however, it is interesting to consider it.

to me, what seems rather likely is what 747firstclass pointed out, some kind of misinformation to put pressure on BA and to come up with a new accord on UK/US traffic rights.

i wouldn´t think that US might be a suitable alliance partner. sure, they have some coverage on the East Coast, but that´s about it. they complement UA´s network nicely, so i´m pretty sure they´d be a nice addition to the Star Alliance, but as the sole feeder to Star in the USA... and neither their financial status is somewhat healthy.

the thing is, the only American airline that comes close to UA´s network is AA. well, some might say DL, don´t know, but DL seems to be much happier with AF than AA with BA. true, if the AA/BA alliance would be given the greenlight, AA would be stupid to switch boats. still, i´d say that there is yet no other transatlantic cooperation which is as close and provides as much benefits to both parties as LH/UA, with the exception of KL/NW perhaps.
so it is only natural that most airlines, such as AA, are looking carefully at possible shortterm industry changes.


If only pure sweetness was offered, why's this bitter taste left in my mouth.
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