Guest

BA Not Happy With Swiss/Oneworld Application

Thu Sep 26, 2002 10:25 pm

Swiss is currently finding difficulty in reaching an agreement with BA over potential admission into the Oneworld alliance.


BA is reportedly unhappy with the prospect of Swiss joining the OW alliance; the two main reasons given were that the British carrier may lose traffic to Swiss's Zurich hub and the fact that because BA and Swiss currently dominate flights between Britain and Switzerland, both airlines may be required by the appropriate regulatory aurthorities to give up slots at their respective bases---as a condition for Swiss's admission into OW....again, BA would not at all be happy with this (it is presently trying to buy as many slots as possible at LHR).

Yet another problem, is BA's reported concern with Swiss's current longhaul fleet...in BA's opinion, Swiss has too many longhaul aircraft for the size of it's domestic market...this would appear to be an indirect criticism regarding Swiss's funding......it was for this reason, that Lufthansa rejected Swiss's application to join Star.

Talks between Swiss and BA are continuing intensively, in an aim to resolve these problems.

Info taken from: Financial Times



 
ARN
Posts: 255
Joined: Tue Feb 20, 2001 12:34 am

RE: BA Not Happy With Swiss/Oneworld Application

Thu Sep 26, 2002 10:49 pm

I find it very unlikely that a carrier would have an opinion about how big the longhaul-fleet is at an other carrier.
Why would reductions in flights from Britain to Switzerland for BA (and LX) be such a big problem that it would stop the entrance from a possible new member? If all alliance members would reason that way, then there would be no alliances. Highly unlikely, in my opinion.
Compared to the total BA supply of flights, how much is Zurich as a destination? 0,2% or 0,3% or ..? I think that BA could reduce Zurich by 2 or 3 flights a day and still be in the air.
 
JAL
Posts: 3875
Joined: Sun Apr 30, 2000 12:37 pm

RE: BA Not Happy With Swiss/Oneworld Application

Thu Sep 26, 2002 10:54 pm

I'm sure that all parties will work out their differences soon and we will hopefully see Swiss join OneWorld.
Work Hard But Play Harder
 
Guest

RE: BA Not Happy With Swiss/Oneworld Application

Fri Sep 27, 2002 12:28 am

Hi

This is just the info I read in today's FT; with regards to slots, I think the relevant authorities (whoever they are) would demand both parties give up a number of random slots at the relevant bases of LX and BA....not just the ones used for flights to/from LHR and ZRH, but a number of other slots too....this is probably why BA is worried.

Regarding LX's longhaul fleet....too large a fleet might mean Swiss is able to undercut competitors through capacity dumping....and one might wonder where all the money for all these large aircraft is coming from, and whether it is necessary. Whether BA has any business in deciding how many longhaul a/c LX should have is questionable, but then again, BA has to protect it's own position, and that might mean investigating management practises of competing airlines (just a guess, as I have no idea).

Furthermore, LX has been suffering a number of operational problems recently...whether this has any effect on current negotiations to join OW is debatable, although other OW carriers have seemed quite willing to reach agreement with LX thusfar.

An interesting development, although I'd be surprised if something couldn't be worked out; I am surprised by the apparent rejection of LX into Star (or at least rejection of a 'proposal') by LH....again on the grounds of the ZRH hub, and LX's supposed 'overcapacity'.

Rgds

 
avion
Posts: 2126
Joined: Tue May 18, 1999 1:28 am

RE: BA Not Happy With Swiss/Oneworld Application

Fri Sep 27, 2002 1:45 am

Capt Picard when did u read that? Apparently BA have now given in and will support LXes application.

Tom
 
Guest

RE: BA Not Happy With Swiss/Oneworld Application

Fri Sep 27, 2002 1:56 am

Hi Avion

You can read the article yourself in today's FT. Just go to FT.com and follow the link to Industries, then transport.

As I said, I'm sure if LX can reach agreement with other members, BA should be able to resolve any problems with LX in due course. If this has already happened, that's good news I guess!

Rgds
 
 
avion
Posts: 2126
Joined: Tue May 18, 1999 1:28 am

RE: BA Not Happy With Swiss/Oneworld Application

Fri Sep 27, 2002 2:06 am

Well a week a ago swiss papers were saying that BA and LX finally came to an agreement and that they would link their FF programs.

Tom
 
gibberish
Posts: 411
Joined: Mon Sep 11, 2000 5:35 pm

RE: BA Not Happy With Swiss/Oneworld Application

Fri Sep 27, 2002 4:40 am

Why would SWISS or BA need to give up slots at ZRH? The airport has so much capacity that the midfield dock has to stay closed! If they really would need to give up any slots it would be the slightest of all problems to get new ones from ZRH. They're probably happy with any airline that wants slots!

gibberish
 
David_itl
Posts: 5946
Joined: Wed Jun 27, 2001 7:39 am

RE: BA Not Happy With Swiss/Oneworld Application

Fri Sep 27, 2002 5:30 am

Gibberish, they'd have to probably give up MAN slots as well as LHR ones as there would be no competition on either route to ZRH; indeed they would have 100% of the market between MAN/LHR and Switzerland!

David
 
blink182
Posts: 5272
Joined: Mon Oct 18, 1999 3:09 am

RE: BA Not Happy With Swiss/Oneworld Application

Fri Sep 27, 2002 8:31 am

If BA/LX has 100% of LHR/MAN-ZRH service, couldn't BMI very well cut a city or a flight and then add ZRH to the route map? Also, BA and LX are both countries' number 1 airlines. Why should they be punished for smart business tactics?

Also, is ZRH slot restricted? I thought it was not.

If enough people are saying that BA and LX have reached agreements, I am pretty sure that Financial Times might be wrong.

blink
Give me a break, I created this username when I was a kid...