B707Stu
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Joined: Sat Feb 05, 2005 4:15 pm

How Alliances May Effect Purchasing?

Sat Nov 12, 2005 11:39 pm

I started to think about global alliances, One World, Star, Sky Team, etc., and wondered, in the world of globization if strategic discussions take place between close partners (i.e. DL/AF/KE/CO) as it relates to upcoming purchases. Obviously different airlines within the same alliance purchase A & B aircraft. But I've started to wonder, like in the case of AF/KL where 2 majors merge if other carriers will consider partners or potential partner fleet designs and plans, incorporating politics, etc.

Can anyone offer any insight here?

For starters:
KL: 744, 330, 777, 737, 767 (going away, right?), etc
AF: 744, 330, 777, 737, 320, etc. and AF is buying 380, right?
DL: 777, 767, 757, 737
KE: 744, 777, 330, ?
 
jwenting
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Joined: Mon Apr 23, 2001 10:12 pm

RE: How Alliances May Effect Purchasing?

Sun Nov 13, 2005 12:08 am

There was already talk of a major order for regional jets by I think OneWorld sometime last year.
It would have been a combined order for possibly hundreds of aircraft made officially by the alliance, giving them massive negotiating power with manufacturers.
I wish I were flying
 
B707Stu
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RE: How Alliances May Effect Purchasing?

Sun Nov 13, 2005 12:29 am

That makes a lot of sense, financially and operationally. Did the order actually happen?
 
jwenting
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RE: How Alliances May Effect Purchasing?

Sun Nov 13, 2005 5:12 pm

Don't know if it happened. Heard there was a lot of grumbling from manufacturers who felt they were being extorted by the extremely low price the alliance offered them (which was I believe little if any over production cost).
I wish I were flying
 
B707Stu
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RE: How Alliances May Effect Purchasing?

Mon Nov 14, 2005 1:20 am

It completely makes sense to purchase in bulk. It'll be interesting to see how A and B respond if this becomes a purchasing strategy.
 
OH-LGA
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RE: How Alliances May Effect Purchasing?

Mon Nov 14, 2005 6:23 am

oneworld in fact did with with purchasing of headphones for use in in-flight entertainment a few years back. They were able to realize significant cost savings by using the purchasing power of several airlines together.
Head in the clouds... yet feet planted firmly on the ground.
 
B707Stu
Topic Author
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RE: How Alliances May Effect Purchasing?

Mon Nov 14, 2005 1:14 pm

If the alliances strategically purchase whatever it will be just a matter of time before Airbus and Boeing will have to strategically sell together! Now that would be interesting, I can hear the A-nutters from both sides going crazy if that happens... viva capitalism, huh?