Air France KLM, Delta, Alitalia offer concessions to settle EU probe

[WorldTraveler]

I'm not doubting that IB and Spain is a mess but BA has really done a pretty good job of isolating the impact to the larger BA system.

intra-European flying is the heart of what makes these JVs work. US carriers deliver traffic to the Euro hubs where it is distributed by the Euro carriers. That part of the Euro carriers' network is not profitable because of low fare competition and is also subject to major strategic restructuring that must in some way reduce losses.

the other major loss-making part of the Euro carriers' networks is Europe to Asia where it competes with the Middle East carriers.

I personally don't think the Euro carriers will completely walk away from intra- European flying but they cannot continue to lose money and have no way to cut costs wthout costly strikes.

it is very possible that US carriers will take back portions of the flying they now funnel thru European hubs
Not all traffic can be carried nonstop to the US but more of it can than is currently being done.

remember that these JVs also are based on sharing costs which means that if Euro carriers lose money flying those routes, US carriers eat part of the losses.

 

[FrugalFlyerv2.0]

it is far more likely that DL is on the verge of taking back more nonstop TATL flying because AF/KL will be forced to cut its network due to financial stress from the strike that will incentivize DL to let AF/KL do less and less for DL until AF esp. has figured out how to compete on a long-term basis.
 

 
Looks like 7500 job cuts are coming to AF/KL.
http://www.reuters.com/article/2014/10/28/us-air-france-klm-employment-idUSKBN0IH0QP20141028

 

[WorldTraveler]

very sad to hear for any company but especially that the cuts are coming to KLM before AF.

it also validates that dramatic cuts (25% is huge) are necessary to stabilize the Euro legacies.

offering up a few slots to settle the EU's investigation is very small in comparison.

looks like AF-KL is denying reports of the cuts.

http://economictimes.indiatimes.com/news/international/business/air-france-klm-denies-reports-of-deep-dutch-job-cuts/articleshow/44960868.cms

 

[topDawg]

it is far more likely that DL is on the verge of taking back more nonstop TATL flying because AF/KL will be forced to cut its network due to financial stress from the strike that will incentivize DL to let AF/KL do less and less for DL until AF esp. has figured out how to compete on a long-term basis.
 

 
That happens right after I get ready to do HMVs on 320s and 737s at Delta. 
 
so never. 
 
 
(note I said me, not DGS or Mexico)