This could really everyone, is AMR ready?

[Barfbag]

As for the rest it's just the usual "DL is the greatest and no carrier can compete" BS. Anyone who has been around this industry and understands it as well as you claim also knows that the situation that exists today can be reversed in a relatively short time. I remember when PanAm was at the pinnicle of the industry, but where are they now? TWA? I remember when EA carried more passengers than any carrier in the world except for Aeroflot - where are they today?

Jim

Yes; the worlds airline digestive system is churning again, who know how the the latest batch of turds will look like.

 

[eolesen]

very possible... but how easy is it going to be to sell any failing European company in the years ahead, of which there may very well be many in southern Europe?

Who said anything about selling them, [edited]? I said spinning them out of IAG. That could be divestiture, it could be selling, or it could be shutting them down.

Sometimes a quick amputation means the difference between life and death, and I suspect more than one corporation in the EU will be be looking at ridding themselves of toxic assets...

 

[WorldTraveler]

It doesn't matter what method for divestiture is used; if IB is a drag on IAG and has to be "dealt with" one way or another, it will hurt BA strategically as it is preoccupied.

Yes, you are absolutely right that IB won't be the only southern European company that will get attention... and with LH's strike today, the issue is not just a southern Europe AIRLINE problem, even though the southern Europe economies are driving the problem.

But it doesn't change that IAG is as much in the front of the EU crisis as any airline... and that is highly relevant to their ability to help AA should that be necessary - or if they do, whether they have the bandwidth to deal with other strategic issues.

 

[WorldTraveler]

And BA just got thrown another strategic curve as oneworld member QF has decided to partner with EK which is already dramatically impacting European network carriers.

In a deal that could intensify pressure on international airlines to deepen their commercial alliances, Qantas Airways Ltd. QAN.AU +6.67%and Dubai-based Emirates Airline said Thursday they will align ticket prices and flight schedules.


The 10-year partnership moves beyond traditional code-sharing, where seats are sold on each other's planes, and Qantas will shift its Asia long-haul hub to Dubai from Singapore. The companies will also merge frequent-flier programs.

"This deal will have a fairly seismic shift on the alliances," Emirates President Tim Clark said.

 

[eolesen]

An interesting development, except it's not a curve.

BA and QF have apparently been in discussions to end their JV for a while, presumably dating back to their decision to pull the BKK and HKG kangaroo routes in favor of just SIN.

IAG chief executive Willie Walsh said: “We’re ending the joint business on amicable terms and support Qantas’ decision to work with Emirates. The world has changed since 1995 when the joint business started. This is a small part of our overall network and this move fits in with changes in our global strategy. Asia has become a key market focus for IAG and we’re talking to a number of airlines about alternative options for us.

“Qantas has made it clear that its international performance has been weak and the termination of the joint business won’t have any negative impact on IAG’s financial targets. The good relationship that we have with Qantas CEO Alan Joyce and his team will continue through our joint membership of oneworld”.

 

[ContUNITEus]

The question is: "Is Mesa ready?"

 

[WorldTraveler]

An interesting development, except it's not a curve.

BA and QF have apparently been in discussions to end their JV for a while, presumably dating back to their decision to pull the BKK and HKG kangaroo routes in favor of just SIN.

It is precisely because talks have been going on for quite some time and this is NOT a well-kept secret that BA has had time to adjust its financial plans and expectations.

Having a partner defect and join one of your larger revenue threats DOES affect revenue and it can't be seen any other way.

The erosion of oneworld can't be underestimated either and it makes the job in front of AA and IAG that much harder.