Originally Posted by
Bucking Bar
At the end of the day - I don't think all these "alliances" are all that revenue positive. What they do is allow airlines to rationalize their fleets like DAL and NWA did before the merger to feed A330's with Alaska's 737's and the like, allowing each to play to their strengths. As long as the LCC carriers continue to intensely focus on their core operations (which admittedly they do a pretty good job as evidenced by their continued survival and profitability) I don't see how grandma's yearly trek from New York to South Florida is going to be effected by alliances.
I think you argued against your point. What the alliances are allowing carriers to do is focus on their strengths and not worry about stretching themselves too thin trying to cover other areas they aren't as strong.
Alaska is a perfect example. They have a niche in the market operating in the pacific NW and Alaska areas. Nobody can operate in/out of this region as efficiently, safely, profitably as Alaska Airlines. If a pax needs to go from Fairbanks, AK to Syracuse, NY then Alaska needs help getting them there, so they codeshare with AA and the pax flies Alaska airlines from FAI-ANC-ORD then gets on American Eagle and flies ORD-SYR. Each carrier is playing to their strengths while gaining passengers they would otherwise not be able to help. Alaska can't operate profitably into SYR and American can't operate into FAI.
This same scenario is how the global alliances will be good for all carriers. Maybe DAL can't operate profitably into Marseille, France but their alliance partner Air France has the area dominated, and can most safely/efficiently/profitably get that pax to a point where DAL can take over and get the pax on the remainder of their journey to Augusta, GA.
In a way, you are correct that Grandma's trip from NY-FL won't be effected much because she flies on whatever LCC has the lowest price. In the grand scheme of things, that pax taking a leisure flight NY-FL isnt as desirable as the pax who
needs to travel halfway around the world. The LCCs will eventually get in on the alliance thing IMHO (look at Jetblue and Lufthansa) which will really be the controversial step in the alliance discussion...