b777a340fan
Posts: 651
Joined: Thu Oct 27, 2005 12:42 am

Is It Wrong For The Star Alliance To Get So Big?

Tue Oct 30, 2007 6:29 pm

Don't know if this concerns the US, EU, or anywhere else, but isn't the Star Alliance getting too strong, creating almost a monopoly? I'm not sure who exactly would really enforce that.... Was wondering.
 
stylo777
Posts: 1994
Joined: Mon Feb 13, 2006 7:32 pm

RE: Is It Wrong For The Star Alliance To Get So Big?

Tue Oct 30, 2007 6:43 pm

they can't getting a monopolist when OneWorld and SkyTeam exists, because they aren't that big, but they include a lot of major global airlines like BA, AA, AF, CX, QF, DL and many many more...
 
jfk787nyc
Posts: 478
Joined: Sun Apr 29, 2007 9:59 am

RE: Is It Wrong For The Star Alliance To Get So Big?

Tue Oct 30, 2007 7:40 pm

Depends on where you live, I live in New York and in New York if you do business in Europe and not in London you are a full blown SkyTeam member. Plus, the flights from USA-TLV nonstop are virtually SkyTeam Monolplized
 
ZL
Posts: 37
Joined: Mon Aug 06, 2007 7:37 am

RE: Is It Wrong For The Star Alliance To Get So Big?

Tue Oct 30, 2007 8:11 pm

Quoting Stylo777 (Reply 1):
BA, AA, AF, CX, QF, DL

 Confused
 
Boeing77W
Posts: 171
Joined: Tue May 15, 2007 6:27 am

RE: Is It Wrong For The Star Alliance To Get So Big?

Tue Oct 30, 2007 8:35 pm

Quoting ZL (Reply 3):

I hazard a guess that Stylo777 meant BA, AA, AF, CX, QF, DL are either in Sky Team or Oneworld, basically saying that although neither of these "competitors" to Star Alliance are particularly big they have some very large airlines within them
 
commavia
Posts: 9643
Joined: Mon Apr 25, 2005 2:30 am

RE: Is It Wrong For The Star Alliance To Get So Big?

Wed Oct 31, 2007 2:17 am

Quoting B777A340Fan (Thread starter):
Don't know if this concerns the US, EU, or anywhere else, but isn't the Star Alliance getting too strong, creating almost a monopoly?

Star is hardly a monopoly, nor will it ever be. As others have said, it still represents a small minority of overall global air traffic, and there are two other humongous competing alliances to keep them in check. I think that most don't have any problem with Star growing bigger and bigger, per se, but I think the concerns raised in some quarters relate to quality. I think there are some who feel that with Star's continual march for growth, they may have lowered the standards a bit in terms of the quality - both service for customers and companies' finances - of the airlines they recruit. I'm not necessarily saying that's true, but I've heard the point raised here on A.net and elsewhere.
 
RDUDDJI
Posts: 1698
Joined: Fri Jun 04, 2004 4:42 am

RE: Is It Wrong For The Star Alliance To Get So Big?

Wed Oct 31, 2007 2:53 am

Quoting Commavia (Reply 5):
Star is hardly a monopoly, nor will it ever be. As others have said, it still represents a small minority of overall global air traffic, and there are two other humongous competing alliances to keep them in check. I think that most don't have any problem with Star growing bigger and bigger, per se, but I think the concerns raised in some quarters relate to quality. I think there are some who feel that with Star's continual march for growth, they may have lowered the standards a bit in terms of the quality - both service for customers and companies' finances - of the airlines they recruit. I'm not necessarily saying that's true, but I've heard the point raised here on A.net and elsewhere.

I agree with most of what you said, especially about CS degrading (that is a trend everywhere, but most notably in the U.S. where cost management is a way of life).

However, I think at some point, there may need to be some kind of alliance regulation. There are certain markets and areas that are somewhat monopolized by certain alliances.
Sometimes we don't realize the good times when we're in them
 
commavia
Posts: 9643
Joined: Mon Apr 25, 2005 2:30 am

RE: Is It Wrong For The Star Alliance To Get So Big?

Wed Oct 31, 2007 2:58 am

Quoting RDUDDJI (Reply 6):
However, I think at some point, there may need to be some kind of alliance regulation. There are certain markets and areas that are somewhat monopolized by certain alliances.

But that's the nature of all competition. You can't regulate more service for a particularly market if that market isn't able to sustain competitive service by competing airlines, alliances, or whatever. Beyond that, I'm not sure how successful any regulation could possibly be against alliances - at least in the abstract - since they don't really conform to any strict national boundaries or fall cleanly and neatly under any particular competitive watchdog's jurisdiction. Which regulatory body, for example, would regulate alliances? The U.S. DOJ? ECJ? But how, for example, could the DOJ claim jurisdiction over, say, Singapore Airlines? Or the ECJ regulate the air service of, say, LAN Chile? And even if they tried to regulate the alliances overall, as collective alliance-based organizations, therein too lies problems: how do you regulate something that doesn't actually operate anything? Sure, Canadian regulatory oversight bodies would have physical jurisdiction over, for example, the oneworld Management Company - which is headquartered in Vancouver - but what is there to regulate? The management company based there is just an administrative office with 20-30 employees. It doesn't set any prices, compete or not compete in any markets, schedule any flights, etc. So what would they regulate?
 
777STL
Posts: 2770
Joined: Mon Dec 13, 2004 8:22 am

RE: Is It Wrong For The Star Alliance To Get So Big?

Wed Oct 31, 2007 3:36 am

Ehh they're worldwide alliances. Sure, they can continue to get bigger, but they will get to a point where it merely becomes redundant. Afterall, how many European, African, Oceania, US, and Asian airlines do you need before it become redundant? Unless one alliance has all airlines in one geographic area, I fail to see how it would become monopolistic. And that surely hasn't and won't happen.
PHX based
 
zak
Posts: 1926
Joined: Mon Sep 22, 2003 12:17 pm

RE: Is It Wrong For The Star Alliance To Get So Big?

Wed Oct 31, 2007 4:46 am

no worries, once UA folds, they will be a bit slimmer!
10=2
 
flyingcat
Posts: 339
Joined: Tue May 29, 2007 10:33 am

RE: Is It Wrong For The Star Alliance To Get So Big?

Wed Oct 31, 2007 4:58 am

The larger the alliance the more certain members will grumble about being overlooked and leave.

MX was the last big one.

IB and AZ are both up in the air due to possible purchase.

BD is perhaps most valuable. So many LHR slots yet Bisop has not been able to consistently deliver profits. Maybe another airline can.

Who is online

Users browsing this forum: AABB777, Block40Osan, bohica, carljanderson, dubaiamman243, Google Adsense [Bot], HALtheAI, jbs2886, kgaiflyer, Menzenski, mpsrent, NeBaNi, PanAm_DC10, qf2220, VirginFlyer and 269 guests