AA deserves some slack for slow progress of TATL JV
- Thread starter FWAAA
- Start date
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
setting of goals and management of the investment community's expectations is the job of management, regardless of the airline. If ANY airline provided guidance that was beyond a stretch, then they are the ones responsible for not reaching those goals.... no one expect mgmt has said what and when the expected benefits of the alliance would accrue.
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Also, DL's statement is that the alliance is just now delivering what it is supposed to be delivering, not that it underperformed expectations for a number of years.
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AA and BA haven't indicated how much the rapid influx of competitors into LHR has hurt the growth of AA/BA's business but when the non-incumbent US LHR carriers now carry 1/3 of US carrier traffic to/from LHR including aggressive new entrance this year into the BOS-LHR and MIA-LHR markets followed by an aggressive focus on EWR and JFK to LHR from CO and DL, there is going to be a negative impact on average fares and development of the benefits of the JV. Did AA and BA not recognize this would happen and that the restrictions on access to LHR would impact AA/BA far more than it did other carriers?
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Yes, joint ventures take time to develop but when there were significant market access restrictions that caused a surge of new entrant business when those restrictions fell, it isn't a surprise that AA/BA are facing longer times to accrue benefits than other carriers.
.
Also, DL's statement is that the alliance is just now delivering what it is supposed to be delivering, not that it underperformed expectations for a number of years.
.
AA and BA haven't indicated how much the rapid influx of competitors into LHR has hurt the growth of AA/BA's business but when the non-incumbent US LHR carriers now carry 1/3 of US carrier traffic to/from LHR including aggressive new entrance this year into the BOS-LHR and MIA-LHR markets followed by an aggressive focus on EWR and JFK to LHR from CO and DL, there is going to be a negative impact on average fares and development of the benefits of the JV. Did AA and BA not recognize this would happen and that the restrictions on access to LHR would impact AA/BA far more than it did other carriers?
.
Yes, joint ventures take time to develop but when there were significant market access restrictions that caused a surge of new entrant business when those restrictions fell, it isn't a surprise that AA/BA are facing longer times to accrue benefits than other carriers.
