As if further proof was needed - the world is a crazy mixed up place. So LH is spending some of its cashpile to buy into jetblue and create a local USA footprint. jetblue needed a big strategic change given its current malaise and this is a good match. If for no other reason than it stirs things up a bit.
So this is a good win for LH - with the dollar at an all time low - this is costing LH very little.
This is bad for UAL as it means that LH (who has a real service issue with UAL's product) can have alternative and put its code on a number of flights from JFK hub, as well as the other interconnecting points - DEN, BOS, IAD, etc etc.
It is a shot to Virgin that they cannot have it both ways - on the periphery of Star, and eating their cake domestically in the USA.
It is a competitive response to the tie ups of US and European airlines - if you like there are now 2 layers of alliance. Super Partners (AF and DL, KL and NW, LH and B6 etc), and Alliance partners. Frankly we believe that the general alliance market as reached its sell by date. These tighter relationships will make for better service levels.
We predict more of these in the near future
This is a good move
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