Russia's Aeroflot considers leaving SkyTeam alliance: paper
Jun 28, 2013, 1:35 am
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Russia's Aeroflot considers leaving SkyTeam alliance: paper
Just hit the presses:
MOSCOW (Reuters) - Russian state-controlled airline Aeroflot (AFLT.MM: Quote) is considering leaving the SkyTeam alliance because of unfavorable agreements with other members, in particular U.S. Delta Air Lines Inc (DAL.N: Quote), Kommersant reported on Friday.
The newspaper cited sources close to Aeroflot's board of directors as saying the company was not happy with the development of its routes in the United States, where its partner Delta Air Lines Inc (DAL.N: Quote) offers high fares.
Aeroflot declined to comment on the report.
Dropping out of the alliance could cost Aeroflot $20 million and the airline may consider joining Star Alliance, the biggest airline marketing group, with 27 members.
As a member of SkyTeam, which brings together 19 global airlines, Aeroflot cannot undercut prices offered by other members and could be more competitive in the Star Alliance, group, Kommersant said.
The agreement to join SkyTeam in 2004 was signed in the Kremlin, a political stamp of approval largely due to close ties with Air France (AIRF.PA: Quote), the leading member.
Source: reuters.com/article/businessNews/idCABRE95R06M20130628
Maybe even related to the Edward Snowden debacle
MOSCOW (Reuters) - Russian state-controlled airline Aeroflot (AFLT.MM: Quote) is considering leaving the SkyTeam alliance because of unfavorable agreements with other members, in particular U.S. Delta Air Lines Inc (DAL.N: Quote), Kommersant reported on Friday.
The newspaper cited sources close to Aeroflot's board of directors as saying the company was not happy with the development of its routes in the United States, where its partner Delta Air Lines Inc (DAL.N: Quote) offers high fares.
Aeroflot declined to comment on the report.
Dropping out of the alliance could cost Aeroflot $20 million and the airline may consider joining Star Alliance, the biggest airline marketing group, with 27 members.
As a member of SkyTeam, which brings together 19 global airlines, Aeroflot cannot undercut prices offered by other members and could be more competitive in the Star Alliance, group, Kommersant said.
The agreement to join SkyTeam in 2004 was signed in the Kremlin, a political stamp of approval largely due to close ties with Air France (AIRF.PA: Quote), the leading member.
Maybe even related to the Edward Snowden debacle
Jun 28, 2013, 2:06 am
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Jun 28, 2013, 4:47 am
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They might be looking at benefits from partnering with Lufthansa rather than United. Plus Delta purchasing of VS and its deep cooperation with AF/KL may have cornored Aeroflot's chance of gaining more market share in US routes. Star alliance seems to be a better alliance in terms of market share. Currently sky team is dominated by Delta, who have been very unfair to its alliance member partners (think about Korean...). At least in Star alliance it seems a better coordination among members exists. Me thinks if Aeroflot quits, more airlines will follow suits. There will be only airlines who is loyal to Delta staying in the sky team. But again I think the chance of aeroflot quiting sky team is 35% but you never know!
Jun 28, 2013, 11:37 am
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Most excellent news. Russia is a big hole in the Star network. There have been a few blows to Star lately, so this is a welcome addition. Hope SU knows they may not get away charging YQ on UA issued award tickets.
Jun 28, 2013, 1:21 pm
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Little off topic, but it's my understanding that 99% of the time it's the airline that issues the tickets that decides whether or not to charge YQ and keeps it all. In this case, the thanks trail ends with UA.
Jun 28, 2013, 1:45 pm
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Not quite sure. If you look at most airlines in the world, it's only North and South American airlines that do not charge YQ on their award tickets or on partner awards. Yet the non-N&S American airlines will charge YQ on other non-N&S American partners (e.g., I think there is YQ on LH's flights issued by SQ miles). So LH gets away with collecting YQ on SQ issued tickets but not on US/UA tickets. Something tells me it is the American carriers that refuse to collect YQ.
Jun 28, 2013, 2:06 pm
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Not quite sure. If you look at most airlines in the world, it's only North and South American airlines that do not charge YQ on their award tickets or on partner awards. Yet the non-N&S American airlines will charge YQ on other non-N&S American partners (e.g., I think there is YQ on LH's flights issued by SQ miles). So LH gets away with collecting YQ on SQ issued tickets but not on US/UA tickets. Something tells me it is the American carriers that refuse to collect YQ.
The reason nobody collects YQ on US (and UA domestic + south america) is because they don't publish fuel surcharges on those routes, so the issuing airline doesn't know how much to charge.LH does actually collect YQ on United flights over the atlantic and pacific, the two regions they public fuel surcharges on.