with TAM running around with Star in her eyes, American is clearly feeling jilted. This means that the rearranging of the deckchairs is going on in LATAM. So the JJ/AA code shares look like being swapped for UA/CO based Code Shares. So this puts American at a disadvantage. Not to be outdone (well they waited a while before they started officially dating), so now the American Broad has a new gal - GOL.
AA with up to 69 flights a week US to Brazil clearly needed a new dancing partner. So AA and Gol (yes another LCC interlining) will go steady for a bit. Whether it becomes more, remains to be seen.
And over in the blue corner remains Skyteam with almost no one in LATAM to dance with.
Cheers
Showing posts with label Star. Show all posts
Showing posts with label Star. Show all posts
24 February 2009
23 January 2008
Little Trouble in Big China - the China Eastern Saga
Some of you (us) might be just a little confused in the shenanigans going on over at China Eastern. I know I am.
This doesn't make sense.
Singapore Airlines (SQ) made a play To take a minority stake in the Chinese airline (MU). It made sense. Bringing in Western Style discipline but with a distinctly Asian style that SQ has made all its own. Bringing MU up to World class standards wa very attractive to all concerned.
However not EVERYBODY agreed.
China's big fish airline Air China (CA) doesn't like too much competition. It is much happier if there is fractured and unaligned or weak competition. Oh yes and CA's parent China National Aviation Corp sits on MU's board. So just before the end of last year, China National Aviation Corp started making public noises about how it didn't like the merger and that it would offer a lot of money for a much larger stake in MU. Before you can say Kung Fu - they veto the Tamasek/SQ deal and then offer $1.9 Bn for 30% of China Eastern.
To nobody's surprise this was rejected by MU's management and board. At the same time Air China offered a tie up alliance with MU. Again rejected.
Now comes news that MU has jumped into the other side with an alliance with fellow struggler China Southern (CZ). Are you keeping up so far?
So let's see if we can sort out the alliance players here.
MU is not a member of any alliance.
SQ is in Star
CA just joined Star
CZ just joined Skyteam
CX (CA's partner and cross shareholding) is in OneWorld.
So what is the likely outcome?
For veteran China watchers like us... this is just another nice example of the convoluted arrangements in the Middle Kingdom. It will ultimately have a happy ending. Just don't expect one any time soon and the outcome will be a true example of face saving and complexity.
Got it?
And another thing... are alliances really that useful for consumers?
This doesn't make sense.
Singapore Airlines (SQ) made a play To take a minority stake in the Chinese airline (MU). It made sense. Bringing in Western Style discipline but with a distinctly Asian style that SQ has made all its own. Bringing MU up to World class standards wa very attractive to all concerned.
However not EVERYBODY agreed.
China's big fish airline Air China (CA) doesn't like too much competition. It is much happier if there is fractured and unaligned or weak competition. Oh yes and CA's parent China National Aviation Corp sits on MU's board. So just before the end of last year, China National Aviation Corp started making public noises about how it didn't like the merger and that it would offer a lot of money for a much larger stake in MU. Before you can say Kung Fu - they veto the Tamasek/SQ deal and then offer $1.9 Bn for 30% of China Eastern.
To nobody's surprise this was rejected by MU's management and board. At the same time Air China offered a tie up alliance with MU. Again rejected.
Now comes news that MU has jumped into the other side with an alliance with fellow struggler China Southern (CZ). Are you keeping up so far?
So let's see if we can sort out the alliance players here.
MU is not a member of any alliance.
SQ is in Star
CA just joined Star
CZ just joined Skyteam
CX (CA's partner and cross shareholding) is in OneWorld.
So what is the likely outcome?
For veteran China watchers like us... this is just another nice example of the convoluted arrangements in the Middle Kingdom. It will ultimately have a happy ending. Just don't expect one any time soon and the outcome will be a true example of face saving and complexity.
Got it?
And another thing... are alliances really that useful for consumers?
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