Friday, August 15, 2008

It's spelled C-A-R-T-E-L

You could argue that all these airline alliances are cartels of some sort, but this BA-AA deal is just a little bit too cozy for comfort.

"We believe our proposed co-operation is an important step towards ensuring that we can compete effectively with rival alliances and manage through the challenges of record fuel prices and growing economic concerns," said Gerard Arpey, chairman and chief executive of AMR Corp, the parent company of American Airlines.

Oh really?

If two of the most largest airlines on the planet can't make it work...

Seriously though, this is some serious spin. Granted fuel prices are hitting every business (especially airlines) hard, but please! I'd like to believe that the US government won't approve it, but you-know-whom and his ilk are still in power until January of next year, so it just might squeak through.

1 comment:

Anonymous said...

aa and ba already enjoy a bit of a monopoly in that they've locked up almost all berths at heathrow and gatwick, forcing their competitors to use stansted and luton. if it were up to me, i'd allow aa and ba to have their little alliance only if they surrendered some of their berths at heathrow and gatwick to budget carriers like virgin and jetblue.