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Is A Bigger Alliance Better?

Thu Jun 29, 2000 10:15 pm

Here are some quotes about Sky Team that I found in the June 26, 2000 issue of Delta's employee magazine. Delta's exdecutine vice president and chief marketing officer said this one. "We're focused on where people want to travel, not making grandiose statements about how big we are." Delta CEO Leo Mullin said the next one. "Sky Team will distinguish itself and win the loyalty of international air trabelers by building not the biggest alliance in the world, but the best alliance with the best network."

In the September 1999 issue of Air Transport World, The Air France CEO said that in order not to become "too complicated," Sky Team will include no more than "six or seven members."

Do you think that Sky Team should try to become as big a possible, or do you agree with what these people said?

RE: Is A Bigger Alliance Better?

Thu Jun 29, 2000 10:57 pm

One way to look at it is that, if Skyteam doesn't mention something (which they possess, that other alliances don't have), there'd be nothing left for them to talk about.

But right now it makes sense, because I think Star Alliance is taking on all the members they don't really need in terms of coverage. Maybe a deeper look into the members will show us that Singapore and ANA are necessary members, but right now SQ means a big overlap with TG's routes. Plus Changi becoming the alliance's hub in the region. Hence TG talking about leaving for Skyteam lately. This has been mentioned in the local papers in Thailand.

There are certainly enough carriers around for Skyteam to choose, and build good coverage with. Yet politics somewhere down the road may stop it from making the right decision network-wise.

Personally I don't really care for alliances... if I fly a certain airline for something most others don't offer, I'd do everything to avoid codeshare.

RE: Is A Bigger Alliance Better?

Thu Jun 29, 2000 11:05 pm

I think in some ways it is and other ways it is not, because if you keep expanding and expanding, you will end up having airlines that compete with each other who are in the same alliance,so that could really tear you apart, but if you are bigger, that means more binefits for passengers(airline lounges,more miles etc) so I honestly think that a bigger alliance is better but you have to watch where airline enter from(what market) because you could have two or more members that compete with each other but they are in the same alliance.I could go either way

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