Originally Posted by
callum9999
Does Qatar even want to be in the joint venture?
The "if you can't fight them, join them" thing seems quite self-contradictory in this scenario. If Qatar can out-compete AA etc., why would it want to join the JV and therefore hand over a share of their profits to them? (Assuming my understanding of how joint ventures work is correct anyway)
Quite possibly, yes. The ability for QR to compete on the North Atlantic routes between the US and Europe is very difficult. Only by launching their own Fifth Freedom flights, which would be challenged to the bitter end by the Big 3 in the US (not least driven by QR's ability to staff their aircraft using cheaper, non-unionised labour), despite the irony of legacy carrier's protections via the anti-trust monopolies in place on those routes.
The reality is the North Atlantic market is the most profitable in the world right now. Particularly for premium traffic. If this was a free and competitive market, you can bet QR would be operating multiple flights a day on many of the routes. But, given QR's barriers to direct entry to that market, a JV is entirely likely. I'd see their increased stake in IAG, and soundings for a seat on the board, as a sign of exactly that.
It's a crying shame. Actual increased competition on these routes would actually force BA's hand to up its game on its product offer, particularly its hard product. JV's have a nice way of locking in monopolistic tendencies in the market. Never good for the end-customers as the desire to innovate and invest in the product and service simply isn't there. It's one massive cash cow for BA, at least for now.