|Quoting PanHAM (Reply 3):|
Why should they? Etihad is a clean sheet airline. Why should they "swallow" the old structures of Gulf Air? Etihad is better off expanding with their own (plentiful) ressources.
would do better to take the best GF
employees as GF
shrinks. Airline mergers have a history of letting the problems of the weak airline cripple the stronger.
|Quoting LurveBus (Reply 4):|
Gulf Air practically proved that large injections of cash do not translate into an efficient and profitable airline.
Exactly. It delays reform.
|Quoting Beijing21 (Reply 2):|
I meant Etihad may bidding for GF and then swallow carriers/cabin crews to expand more rapidly and narrow the gap with QR and EK
Cure would be worse than the disease. It would be better for EY
to grow organically with aircraft selected for profitable growth rather than taking on whatever aircraft GF
Its going to be tough for the middle east hub carriers. None of them have sufficient O&D markets to dominate on their own. They have two choices:
1. Have the lowest CASM (EK)
2. Have the best premium service.
The second strategy is being pursued by both EY
. Since neither has a strong O&D market, only one will prevail. As to GF
, they are not as focussed as their three major competitors and thus are in deep trouble. Love or hate EK
, they have a strategy and our sticking to it. By having the lowest CASM and greatest number of connections has an advantage. If it remains a four way competition, you will have three (or even four) weak airlines.
Last I looked, QR
required cash infusions every year and EY
was a few years from a profit. Only EK
generates cash and thus should be able to borrow cash a little easier from the markets. But they are far from unstoppable and could be overexpanding. (Or crazy like a fox... only the future will tell.)
Since much of this expansion is being driven by India to Europe connections, all are long term vulnerable to Indian/European expansion (point to point). However, as long as LHR
and other airports are slot controlled, the advantage goes to those who can effectively hub and fill large airframes. Not to mention the Indian government has messed with their airlines so much that they missed growth opportunities.