myk
Posts: 434
Joined: Wed Jul 07, 1999 8:56 pm

Lufthansa To Cut Ties With Air Canada?

Sat Dec 13, 2003 3:57 am


Lufthansa is threatening to end its ties with AC unless a bankruptcy judges agrees to let AC resume payments on a $195 million debt partially guaranteed by the german carrier.

Any news about it ? I think its about code-shares ! Is this the Star alliance ???!!!!
 
Leskova
Posts: 5547
Joined: Wed Oct 08, 2003 3:39 pm

RE: Lufthansa To Cut Ties With Air Canada?

Sat Dec 13, 2003 3:59 am

Am I having a déjà-vu? Wasn't there a thread around yesterday with exactly the same topic?

I'll go look for it... maybe I'll find a link to it...
Smile - it confuses people!
 
Leskova
Posts: 5547
Joined: Wed Oct 08, 2003 3:39 pm

RE: Lufthansa To Cut Ties With Air Canada?

Sat Dec 13, 2003 4:05 am

Found it...

http://www.airliners.net/discussions/general_aviation/read.main/1298551/6/

Aside from that... as I've said in the other thread...

... I doubt that, after losing Mexicana, LH is interested in losing another airline-partner... I see this as an effort of putting pressure on the court to grant the motion as well.
Smile - it confuses people!
 
myk
Posts: 434
Joined: Wed Jul 07, 1999 8:56 pm

RE: Lufthansa To Cut Ties With Air Canada?

Sat Dec 13, 2003 4:32 am

Sorry folks, I didn't saw the thread
 
ckfred
Posts: 4763
Joined: Wed Apr 25, 2001 12:50 pm

RE: Lufthansa To Cut Ties With Air Canada?

Sat Dec 13, 2003 4:32 am

If, for the sake of argument, LH does cut its ties with AC. Then, just like the MX situation, Star tosses AC. Does AC then start trying to join OneWorld? Or does AC at least try to enter code-sharing agreements with some OneWorld members, like AA and BA?
 
UnitedFirst
Posts: 451
Joined: Mon Jun 11, 2001 12:16 pm

RE: Lufthansa To Cut Ties With Air Canada?

Sat Dec 13, 2003 4:39 am

I strongly doubt that Air Canada would ever let it get to the point where Lufthansa would completely sever ties. As is said in the article, Lufthansa is a crucial part of Air Canada's trans-Atlantic strategy, and there's no question that Lufthansa has become quite cozy with its special "in" with the Canadian market. Something that no other major European carrier has (BA lost it when Air Canada bought out Canadian, and KLM, Air France, Alitalia, etc have no reasonable alternative).

-Derek
 
johnnybgoode
Posts: 2144
Joined: Wed Jan 03, 2001 8:47 pm

RE: Lufthansa To Cut Ties With Air Canada?

Sat Dec 13, 2003 6:21 am

as i have already stated in the other thread, there is probably no doubt that LH has any real interest in severing ties with AC, but it is protecting its financial interests.

without LH, AC would probably have a much harder time to leav bankruptcy protection since LH is a major part of their transatlantic business.
i even think this pressure that is put on by LH might facilitate things at AC. to the Canadian authorities it may stress the importance of a speedy and smooth return to viability of AC.

rgds
daniel
If only pure sweetness was offered, why's this bitter taste left in my mouth.
 
ScottB
Posts: 5507
Joined: Fri Jul 28, 2000 1:25 am

RE: Lufthansa To Cut Ties With Air Canada?

Sat Dec 13, 2003 6:38 am

I agree that LH seems to have more to lose than Air Canada if they choose to sever ties with AC and AC is subsequently booted out of Star. I believe that both oneworld AND SkyTeam would love to have the coverage of the Canadian market that AC provides to its alliance partners, even in spie of its current financial difficulties. Clearly a partnership with AC would be beneficial to BA given that AC operates 9 daily flights into LHR (over twice as many as they offer to FRA) and could provide substantial connecting feed. I'm sure AF also would love to pick up additional traffic from AC to and through CDG. AA would certainly welcome an alliance with AC, given that they were willing to help finance the Onex merger proposal between CP and AC in order to maintain their codeshare.

If Star loses AC along with MX, its North American presence will be limited to United and US Airways, and US Airways' future currently looks cloudy at best. One of the other two alliances would be strengthened at Star's expense -- and that's not good for LH.
 
searpqx
Posts: 4173
Joined: Thu Jun 29, 2000 10:36 am

RE: Lufthansa To Cut Ties With Air Canada?

Sat Dec 13, 2003 7:47 am

I don't put any true credence behind this, other than it's a posturing move to put pressure on the Canadian courts. But to throw out something else to think about, wouldn't it be LH that would face eviction from Star if they sever ties w/ AC? Just as MX was/will be evicted for severing ties with UA?

Just a wild thought. . .

Duane

"The two most common elements in the universe are Hydrogen and stupidity"

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