Topic Author
Posts: 59
Joined: Fri Dec 03, 1999 6:47 am

One Big Airline?

Sun Dec 05, 1999 3:10 am

Do you think Star Alliance, One World and the other alliances will be one airline some day? Just imagine how it will be like.

Posts: 2196
Joined: Wed Sep 08, 1999 12:01 pm

RE: One Big Airline?

Sun Dec 05, 1999 4:31 am

That would suck. I like experiencing different airlines while at the same time always being close to your favorite.
Posts: 1369
Joined: Fri Aug 06, 1999 9:27 pm

RE: One Big Airline?

Sun Dec 05, 1999 5:06 am

Big airlines don't seem to be effective!

I know the circumstances were different, but the 'old' Aeroflot tried that... and it is clear that all sorts of business in-efficiencies are created.

Even airlines like BA are divided into individual business units, but with a common brand to promote. (which they have done very well at destroying with the new liveries).

RE: One Big Airline?

Sun Dec 05, 1999 6:43 am

I don't think that you can really use the old Aeroflot as an example here. The truth is, that airline was operating on totally different principles than a modern carrier. Aeroflot's main purpose was simple: To glorify the state. It was huge only becasue the USSR government lost a lot of maoney making it so, not because there was sufficient demand for a business of its size. Had Aeroflot been run under capitalist terms, it weouldn't have grown so needlessly large and could have been much more successful. When a company's entire foundation is the fact that the government doesn't care how much money they lose, it can't survive when the government changes its mind.

RE: One Big Airline?

Sun Dec 05, 1999 3:11 pm

The "One Big Airline" concept is already reality:

Nov 25, 1999

The big five global airline alliances now control half of the passenger travel market, according to Airports Council International.

Star Alliance, oneworld, Delta/Air France, Wings and Qualiflyer have nearly 50 per cent of total world scheduled passenger numbers in 1998 based on ACI and IATA statistics, Michael Brown, ACI business adviser, said.

The world's 10 largest airlines alone account for 40 per cent of the world market with 573 million scheduled passengers last year and all of these, except for US Airways, are now in a global grouping.

The Star Alliance, with some 250 million passengers in 1998, had a 16 per cent share of the world market last year ahead of the oneworld group with 10 per cent, Mr Brown said.

The Delta/Air France group, currently in formation, would have had a world market share of just over 8 per cent in 1998, slightly ahead of the Wings group based around KLM, Northwest and Continental.

Trailing the field was the Swissair-led Qualiflyer group with just over 2 per cent.

The Star Alliance is led by Lufthansa, SAS and United Airlines. Main partners in oneworld are British Airways and American Airlines.

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