Ukridge
Senior
- Joined
- Aug 27, 2002
- Messages
- 354
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For the next few months I have to occasionally pendle with the Star (in this case read Lufthansa) between London and Frankfurt. As I was doing so this week I was wondering why the Star does not come to the aid of one of its struggling members. What I mean is this. In the UK we constantly hear of that American behemoth Wal-Mart and its rapacity in opening new locations within the FC. They use their power and size to drive the absolute lowest prices from the suppliers. This seems to work as Wal Mart is able to keep its prices attractive enough to lure the customers.
Why does the Star not adopt a similar strategy? While I was sitting in the back of a Lufthansa A321 I was served coffee and served a snack in a box. Why does the Star not purchase 25 million coffee cups, 25 million little boxes etc. and then distribute them among its members? The pricing authority over a supplier would be breathtaking. Instead of United or LH each negotiating for everything from fuel to food why not do it as a single unit? From what has been revealed through the BK process the historical record in extracting the lowest price from the suppliers has not been sterling.
In this manner the costs could be lowered even more – a purported goal. If everything the member airlines needed was purchased through a central purchasing agent (in this case the Star) one would readily see advantages. If indeed the Star acted as such a purchasing agent one could still steer clear of regulatory issues as this is not an ownership issue but rather a supplier-seller one. This would put additional pressure on the LCCs that seem to be nipping at the heels of carriers such as United.
Second. Within the bounds of the aforementioned regulatory issues, why does the Star not render aid and succor to one of its members that is ailing? I have not kept full apace of the threads lately but it seemed that January’s results did not portend well. Why not then Star providing some healing salve? When United is again in fine form, it may be called on one day to provide the same type of assistance to another injured part of the body Star.
This is the teamwork that could yield great benefits. It would also engender the strength to join combat against the competitors perhaps even forcing a few of the LCCs to quit the field in the shame they so richly deserve for the vulgarization of the travel industry (i.e. read of that low-bred cretin from Ryan Air).
It seems that the Star is working well for the average passenger like myself with the ticketing and baggage but has not yet turned toward where the greatest gains are to be made. One thing I have learned in my short period of observation is that changes in the industry are effected at a snail’s pace. I say this with all due respect but I put forth to you that five years seems to be the absolute minimal time slice for any effort. Nearly 30 months after the horrors of 11 September, an effort is underway with a new advertising campaign to gain customers. 30 months? What else will come forth this decade??? 😉
Lights out.
Cheers
Why does the Star not adopt a similar strategy? While I was sitting in the back of a Lufthansa A321 I was served coffee and served a snack in a box. Why does the Star not purchase 25 million coffee cups, 25 million little boxes etc. and then distribute them among its members? The pricing authority over a supplier would be breathtaking. Instead of United or LH each negotiating for everything from fuel to food why not do it as a single unit? From what has been revealed through the BK process the historical record in extracting the lowest price from the suppliers has not been sterling.
In this manner the costs could be lowered even more – a purported goal. If everything the member airlines needed was purchased through a central purchasing agent (in this case the Star) one would readily see advantages. If indeed the Star acted as such a purchasing agent one could still steer clear of regulatory issues as this is not an ownership issue but rather a supplier-seller one. This would put additional pressure on the LCCs that seem to be nipping at the heels of carriers such as United.
Second. Within the bounds of the aforementioned regulatory issues, why does the Star not render aid and succor to one of its members that is ailing? I have not kept full apace of the threads lately but it seemed that January’s results did not portend well. Why not then Star providing some healing salve? When United is again in fine form, it may be called on one day to provide the same type of assistance to another injured part of the body Star.
This is the teamwork that could yield great benefits. It would also engender the strength to join combat against the competitors perhaps even forcing a few of the LCCs to quit the field in the shame they so richly deserve for the vulgarization of the travel industry (i.e. read of that low-bred cretin from Ryan Air).
It seems that the Star is working well for the average passenger like myself with the ticketing and baggage but has not yet turned toward where the greatest gains are to be made. One thing I have learned in my short period of observation is that changes in the industry are effected at a snail’s pace. I say this with all due respect but I put forth to you that five years seems to be the absolute minimal time slice for any effort. Nearly 30 months after the horrors of 11 September, an effort is underway with a new advertising campaign to gain customers. 30 months? What else will come forth this decade??? 😉
Lights out.
Cheers
