FlyerTalk Forums - View Single Post - Introducing the 9th member of the Oneworld Alliance
Old Sep 28, 2003 | 9:13 am
  #26  
Darren
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by michswiss:
2. Financially, this is an additional bonus for Swiss as it essentially unloads a liability from the balance sheet not to mention the cost savings of not having to maintain lounges, TC call centers, etc. BA picks up more 'direct' access to a new and potentially lucrative customer-base through an under-the-radar transaction no one noticed in any of the press briefings I read today.
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I agree with all of that but the lounge one. The lounges are used for more than just FF status holders and Swiss will have an incentive to maintain most of them in key spots regardless if they are baec or swiss's current ffp. I imagine maintaining a ffp for a smaller airline like Swiss, Austrian, or LOT would be a real pain in the neck. Like a smaller town maintaining its own police and fire department. It's often cheaper to contract it out to the county or state who are happy to provide the service.

Also, the mileage earning problem with swiss seems like it will only be a one way problem unless the terms change. The way it's written, you cant earn AAdvantage miles on a BA flight and you can't earn BAEC miles on an AA flight. Since Swiss is becoming part of BAEC, you wouldnt be able to take an AA flight and post them to your "swiss" account. But since a swiss flight is not a ba flight, there should be no problem with getting aadvantage miles on a swiss flight.

What is an additional question is how many miles will be earned. BA cut all its mileage to 25% for discount travel. Right now, swiss earns 100% for AAdvantage. Will it continue to or will it be cut due to baec taking over? Who knows. Either way, not sure anyone can do much about it. Personally, I don't expect that LX will be changed so that it doesnt get mileage. I dont think AA will put up with it. But I do think that it will be changed to 25% becausse there isn't a whole lot AA can do. That decision is wholly up to BA. At least trans-atlantic codeshares are still allowed so people still have a choice.

[This message has been edited by Darren (edited 09-28-2003).]
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