Kadish wrote:dcajet wrote:Kadish wrote:I think it s also a way to prevent anothwr airline like ux to enter in the market...but for me it's hard to understand why they r not sending the plane to Tokyo where the yields are higher and also good factors...
I do not have the numbers of IB's ops to Central America or to Japan but more often than not, the less traveled to cities are the ones that tend to be the most profitable as Iberia tends to be the only game in town when it comes to flying to Europe directly. Same applies to some routes to Africa - they can be incredibly profitable. Just think of all the options one has from MAD to Tokyo with a simple connection. Then think of SAL: most connections involve stopping in the USA and dealing with passport controls, etc, You can't beat Iberia to Latin America and they surely charge a premium for that.
I see the logic in ur opinion but if that is true why ux for instance opens routes that r already flown by Ib like the last one in Panamá? If ur theory were right they shoul open sth new in Kenia, China,India (silly examples)...where nobody fly
The examples you provide (I know that you were not serious) are places where Iberia does not have the competitive advantage it has in Iberoamerica, where Spain is the motherland and Iberia a household name. All Iberia and Air Europa do is mine what is their natural (by historical and cultural ties) place to do business. Panama has probably matured enough that it can support both airlines. There are market such as ASU, COR, SAP where only UX can make it work, etc.
The above is the same reason why BA concentrates a good deal of its international network on the USA: they have a competitive advantage between London and the USA.