Let the Games Begin............


Delta, Virgin Blue Joint Venture Gets Australian Nod

By Jay Boehmer

DECEMBER 10, 2009 -- Delta Air Lines today said the Australia Competition and Consumer Commission approved its antitrust-immune joint venture with Virgin Blue Airlines Group, though the U.S. Department of Transportation has yet to similarly bless the arrangement announced in July.

"Delta and V Australia are eager to move forward with their joint venture, and to bring new services to the market," Delta said today in a statement. "We look forward to a similar decision from the U.S. Department of Transportation and urge the DOT to quickly conclude its review so consumers can begin to enjoy the important benefits of the alliance identified by the ACCC."

DOT last month issued an order asking Delta and its potential joint venture partner for more information on their application for antitrust immunity. "We find that the additional information is necessary to analyze the application and make a decision," DOT wrote in the order last month.

Only after Delta and the Virgin group submit further information will DOT "establish a procedural schedule for comments and other such responsive pleadings necessary to act on the application," a process that could drag on for months if previous antitrust immunity applications are any indication.

Newcomers this year to U.S.-Australia routes Delta and the Virgin group in July announced plans to form the joint venture as a competitive alternative to Qantas Airlines and United Airlines, the carriers with the highest marketshare between the two countries. The carriers proposed immunity from antitrust laws so they can jointly cooperate "in the areas of planning, revenue and pricing, yield management, marketing and operations" (BTNonline, July 27). The structure is similar to joint ventures that have grown prominent among alliance partners on the U.S.-EU routes.

In its draft approval last month, ACCC proposed to grant authorization to the carriers "for a limited period of three years" to ensure public benefits are realized.

"The ACCC considers that the joint venture is likely to assist Virgin Blue and Delta to compete more effectively against the incumbents on the routes, Qantas and United Airlines," ACCC chairman Graeme Samuel said in a statement upon the ACCC's draft approval, which Delta indicated the commission finalized this month. "The entry of Virgin Blue and Delta on the transpacific routes has created strong competition on price and service in the market for passenger transport. The ACCC expects that this would continue to be the case under the new arrangements to the benefit of consumers," Samuel concluded.

 

After reading the email from UAL MEC, I believe UAL and Aer Lingus are to blame. I was wrong originally in saying UAL and Aer Lingus were not to blame. Now lets just see how ALPA is preparing to fight this battle. Mark my words, fellow pilots, if ALPA doesn't represent our pilot group well this time around we are going to be just like every abusive commuter or regional airline where there are no rules of contract negotiations and/or the work rules are not good at all.

(for those of you military folks that didn't work for a commuter or regional airline)

Proposal: The Airline Pilot Central Administrator should start a Pilot Union. You have all the information and details regarding this industry. You have almost every pilot as a member of your website. If ALPA or any other pilot union is not representing then it is time to kick them to the curb.

Please don't hate me for this proposal it is just an idea.

 

That's the kicker. Code shares and all that are one thing but these joint ventures are a huge threat to all of us. Now that I know what is going on I hope the UA and EI pilots plus ALPA and IFALPA can knock this thing down.

 

Not to flame anyone, but let’s face it, the pilot groups lost their footing, on a local basis, when they chose to classified their cut in pay rather than a temporary minimal interest rate loan for said reductions with a guaranty of repayment, along with termination of retirement benefits, and health benefits.

So if ALPA was instrumental in negotiating the above, how do you expect the pilot group to regain respect as a power group against management? Too bad pilots around the country can’t band as one group rather than treating their own airline as their territory, and basically survival of the fittest.

Although doubtful, perhaps ALPA, and IALPA will join forces in this matter.

 

At least for the ones still working.

 

They are still interviewing and hiring. Good luck and a long career to the new hirees!

 

pilots suck.

That is all.

 

Yes we do. As much as we complain about our union and management. It is still the pilot that accepts what they offer.