Originally Posted by
Sink r8
You're not missing something: you're adding something. You're adding an "s". They're not going after ventures. Just ours.
It's just another slap across the face, from a regulatory standpoint. Means someone owes the Brits and the Spaniards a favor WRT protecting oneworld and helping them control/retain AMR. And the Germans are too powerful to be touched.
Also, you'll notice United and American are making the right noises, to make IAG and LH happy: thye're whining that we don't have full transatlantic mergers. RA said ont he last call that we don't need mergers, since alliances work just like mergers. The very next day, the Europeans announce the probe.
So if you hope threatening to kill our venture is going to make RA buy a bunch of airplanes, your heart is in the right place, but your brain isn't: it'll merely lead to Delta lobbying for mergers along with the others. Didn't like sharing with AF/KLM before? Not to worry, they'll solve the problem by making sure your flying is now their flying.
Guess which side of the Atlantic has strong labor protections that prevent job losses, and guess which side doesn't?
Perverse conclusions, but probably an accurate analysis. Sorry.
The European Commission said it will investigate 'whether the partnership may harm passengers on certain European-US routes where, in the absence of the joint venture, the parties would be providing competing services.'
This is really a limited probe for certain routes. The larger antitrust probe against SkyTeam was recently closed.
Star is not immune:
A similar EU probe into an agreement by*Deutsche Lufthansa AG (LHA) and United to cooperate on trans-Atlantic routes as part of the Star Alliance is “ongoing,”
My guess is we'll see a few more odd Transatlantic routes added for Delta to appease the regulators funded by pulling down capacity on others.
In March we'll be at a roughly 46% share of the drastically pulled-down transatlantic JV, so there will be ample room for Delta to add a flight here or there.
One aspect to consider: this is a profit-sharing JV.
Delta is profitable, whereas AFKLM/AZ isn't right now.
It's not in Deltas corporate interest to increase Delta's share of flying if the profit gets split with the other team, even if it's capped.
Cheers
George