Topic Author
Posts: 1064
Joined: Fri Feb 04, 2000 4:45 am

The Benefit Of Alliances To Passengers

Thu Jan 04, 2001 1:37 am

I personally like airline Alliances although I think I like them for the wrong reason. Since alliances like Star and OneWorld became "all the rage" it seems to me that there are a lot less direct flights and airlines now just fly to major hubs. For example there is no direct flight to Vienna from Toronto. Air Canada flies(sp?) you to London and you connect through Austrian to Vienna. I have no problem with this; I see more airports, fly different planes and sample different airlines. Now, for people for whom airlines and airplanes are just another mode of transportation are alliances really a benefit?

For airlines the benefit is simple, less flights, less cost same ticket price more profit. Although I sometimes wonder how Star Alliance works. It is HUGE, it has so many member airlines. How is it that service does not overlap and the member airlines don't end up stifling each other? Star at the beggining seemed great, 1 or 2 major airlines from each part of the world: Europe, Asia, North America. Now with the number of European airlines in Star how do they not overlap?

One thing I do not like about alliances is that it makes the airlines in it loose it's identity. You are no longer talking pride in flying your national airline because you are not, you are flying the alliance it belongs to. Eventually it seems there will be no more national airlines, we will have Alliance Air, OneWorld Air, Qualifier(sp?) Air and the rest.

What do you think?

The Ticketor
Posts: 427
Joined: Tue Oct 24, 2000 9:02 pm

RE: The Benefit Of Alliances To Passengers

Thu Jan 04, 2001 1:57 am

One of the important points of the oneworld alliance is that every airline keeps its own brand, and I think that has worked well. The hub thing is something that annoys (sp?) a lot of people, and that might be a negative. Mostly, I think alliances are good. They offer you the possibility to fly to places you couldn't before from at a reasonable price through code-shares. Of course, being in an alliance is no prerequisite to have a code-share, but it makes it easier. On the other hand, it's not all good. Look at the situation in the German-Scandinavian market. That's almost a Star monopoly (SK-LH), which is clearly not good for customers. In my opinion, LH is much too dominant in the German market. Look at the slots at FRA and compare them to BA's slot at the LON apts. LH's got a huge advantage. But we'll se what happens to the BA/AA anti-trust thing with the new US administration. AA are hopeful I hear.

Gotta go walk my dog now. Take care!
Topic Author
Posts: 1064
Joined: Fri Feb 04, 2000 4:45 am

RE: The Benefit Of Alliances To Passengers

Thu Jan 04, 2001 2:24 am

While writing the post I was thinking mainly of Star, there are just too many members for anyones good.

RE: The Benefit Of Alliances To Passengers

Thu Jan 04, 2001 3:07 am

I personally think such alliances are incredibly important. The ultimate aim of such a group is to provide the traveller with easy comfortable connections, by minimising the time between arriving and departing. By affiliating, airlines can offer consumers a worldwide network, covering in reasonable detail, destinations on all continents. Indeed, if one looks at the airlines which make up an alliance, then it’s clear that they are from a variety of different countries, therefore offering access to new destinations. If a destination is already served, by combining all flights, frequency may be increased, thus satisfying an important aim of consumers; convenient choice.

Not only will passengers be rewarded with commodious connections, but also – in most cases – access to member airlines lounges, thus an opportunity to repose before a flight. By offering a coalition, airlines are therefore in a better position to serve the ever-valuable passenger. If united, airlines can acquire a stake in new markets, which perhaps it would otherwise have no connection with. A unity clearly does not only favour passengers. Indeed, it is a prime opportunity to increase profits, which can be effectively achieved if code-sharing (an airline purchases seats on melange flights which they do not operate), therefore pleasing shareholders, which is obviously the aim of virtually all companies.

In conclusion, I believe such alliances are important and highly appropriate, not only to airlines, but also, and more significantly, to consumers.

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