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Old Oct 13, 2000 | 7:47 pm
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Koala
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Join Date: May 1998
Location: MEL
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Posts: 538
One World implodes

Sydney Morning Herald reports that AA "has said" it intended to quit OW. In today's report, Peter Harbison commented on the volatile situation for OW in an industry which is very promiscuous, with airlines jumping in and out of bed with each other to gain short-term advantage. Harbison states that AA is in discussion with the Qualiflyer Alliance. If AA joined Qualiflyer, then BA/QF might look to Continental as their new US partner. See www.smh.com.au
Despite the difficulties between AA & BA, I am not sure that either airline can afford to break their link, as the monSTAR has gone from strength to strength, since effectively linking with the Singapore Airlines quartet [SQ/VS/NZ/AN]. SQ has cleverly built in equity and management control that ensures those four stay together, no matter what happens to broader alliances. That grouping now spans the north and south pacific, and the atlantic. All SQ needs to complete its own "alliance" is an American equity partner.
Koala

[This message has been edited by Koala (edited 10-13-2000).]
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