Ciro
Topic Author
Posts: 639
Joined: Mon Aug 16, 1999 5:00 pm

Alliances In The Middle-East

Mon Dec 10, 2001 12:21 pm

Folks,

Besides the historical political instability in that area, what are the odds for Saudi Airlines, Emirates and El Al to join SOON a global alliance?

looking forward to reading your inputs. Regards!
The fastest way to become a millionaire in the airline business is to start as a billionaire.
 
khi747
Posts: 1532
Joined: Tue Oct 31, 2000 6:30 am

RE: Alliances In The Middle-East

Mon Dec 10, 2001 5:50 pm

I dont think there is any such possibilty. Despite of all the political reasons i dont see the commerical sense of forming an alliance between Saudia, Emirates and EL AL !
 
Ciro
Topic Author
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Joined: Mon Aug 16, 1999 5:00 pm

RE: Alliances In The Middle-East

Mon Dec 10, 2001 7:48 pm

I think Saudia would fine with Star Alliance, Emirates with OneWorld and El Al with Skyteam.
The fastest way to become a millionaire in the airline business is to start as a billionaire.
 
EmiratesLover
Posts: 324
Joined: Fri Dec 01, 2000 11:40 pm

RE: Alliances In The Middle-East

Mon Dec 10, 2001 8:12 pm

Gulf Air has an alliance with American Airlines.I think it relates to code-sharing agreements with respect to transatlantic flights.

Emirates has frequent flier agreements with Continental, United, British, South African, ANA and SriLankan.It also is tamed up with SriLankan and ANA in the SKYWARDS program, and also has a codesharing agreement with THAI on the relevant routes.

Having said that, even the most prestigious of Middle Eastern airlines do not see the advantage of joining the major airline alliances for commercial reasons.This is largely because they tend to be rather independent minded, and prefer to have autonomy over their operations.

Note to CIRO - the current political instability only affects ELAL directly.Saudia, Emirates, Gulf, Qatar Airways etc are not affected directly so it is irrelevant to a large extent.Emirates, for instance is still very profitable.When to airline crisis passes, and I hope and pray it will pass sooner rather than later, then the Middle East as a whole( with the possible exception of Israel-Palestine) , plus the rest of Asia will be well suited to recover and rebound, possibly even faster than the rest.
Hope For the Best
 
TCA256
Posts: 695
Joined: Sat Dec 04, 1999 3:59 am

RE: Alliances In The Middle-East

Mon Dec 10, 2001 8:14 pm

El Al doesn't have a real hub in Tel Aviv, that means
people should check in out of Israel then again in
Ben Gurion airport...with all luggages for the security
checks, that undermines a lot the idea of a smooth
connection like elsewhere: who can afford to spend
3hours for security grillings, in addition to the regular
time between two flights ? Above all, El Al's offers on
the European/US/Asian destinations are better covered
by competitors...it would have been better if peace
was there, and they could offer nice connections to
Midldle-eastern destinations!

Emirates look to me as good potential partner in an
airline, good hub in Dubai...good company and reputation, what more could be asked ?
 
avi
Posts: 879
Joined: Sat Sep 15, 2001 1:27 am

RE: Alliances In The Middle-East

Tue Dec 11, 2001 1:46 am

I don’t know if ever there will be a business connection between El-Al and to those companies but El-Al will be the first to enjoy a normal relationship between Israel and ALL of it’s neighbors.

Check the link and see how El-Al flies today to the far east.
http://www.elal.co.il/flights/route-map/index.htm

Long live the B747
 
ly772
Posts: 1269
Joined: Thu Aug 02, 2001 9:33 pm

RE: Alliances In The Middle-East

Tue Dec 11, 2001 6:50 am

LY could be good in the Star Alliance.
 
fly_emirates
Posts: 970
Joined: Sat Oct 21, 2000 11:22 am

RE: Alliances In The Middle-East

Tue Dec 11, 2001 7:18 am

Ciro!

i wonder on what fact did you base the Instability for Emirates! we are stable! while other airlines were laying off, my airline (as i work on Emirates) ordered 58 aircrafts in a cost of 15 billion dollars! so i wouldnt call that as instability! and as Emirateslover said, we have agreements with United, Continental and sirilankan..

 
Ciro
Topic Author
Posts: 639
Joined: Mon Aug 16, 1999 5:00 pm

RE: Alliances In The Middle-East

Tue Dec 11, 2001 8:45 am

Fly_emirates,

I did not direct my point towards specific countries, but to the region as a whole. Talking within the macro analysis, an airline grouping will look at the benefits and risks of serving a particular area with a key and strategic member. Moves like takeovers, joint-ventures, (or a more compreensive code-sharing agreement, which is somehow the equivalent in the Airline Industry) etc, are quite sensitive to ups and downs in the economic/ political arena. I do believe the Middle-East is passing through an unusal political turmoil now, even though we all know that United Emirates remais one of the most stable and fastest-growing country in this part of Asia. I´ve no doubts that EK is a preferred member for any important airline grouping, thus why I posted this topic.

The same applies to other parts of the World, such as Latin America. The economic and political instability in countries like Venezuela, Argentina and Peru affect the region as a whole, which makes great carriers (TAM for example), non-priorities for OneWorld or Skyteam right now. No wonder VARIG and Lan Chile remains the only invited airlines to cover the region as full members of worldwide alliances.

Thanks for hearing me again!

The fastest way to become a millionaire in the airline business is to start as a billionaire.

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