Originally Posted by
zippy the pinhead
I had stopped following this story, naively thinking it was simply a matter of time before the merger was completed.
Even before UAL and other legacy carriers got C19 money from the US Government,
UAL spent a good amount advocating for their interests via lobbying. Since then
direct contributions increased, and I wouldn't be shocked to learn that indirect contributions and lobying also increased, and to some extent there is a two-way street there, "you scratch my back and I'll scratch yours." I'm sure the DOJ was happy to help. I can't think why UAL would oppose this, though.
Some years ago there was a class-action lawsuit involving KE and OZ which they settled, but it seems to have had all the effect of a fart in a thunderstorm, as you can pick a random week, check the prices for KE and OZ, and they are practically in lock-step, regardless of Y class or J class, varying by no more than a couple hundred dollars (maximum) for J class. What I don't understand is why UAL would be negative on this. The cost to fly UAL from USA <--> ICN is consistently higher, if the competition was partially reduced/eliminated, would they not be able to "compete" more effectively? Charge more? Can anyone explain it like they would to a five-year-old?
I can only assume that UA would be against the merger because:
1. They will loose feed from OZ at ICN.
2. They will loose feed from OZ transpacific flights to domestic US destinations.
3. Once taken over by KE, United will potentially loose access to many thousands of Star Alliance FFP members at ICN who will transfer to Skyteam (KE and DL).
I would also add that in a number of markets the passenger profile is tilted heavily to the Korea point of sale which can make it harder for foreign airlines to compete without a local partner and their FFP members. BA tried ICN but with next to no feed at ICN and a point of sale tilted in Korea’s favour it was hard to compete (perhaps if they had a Oneworld partner in Seoul they would still be operating the route). If this is also true of the US-Korea market it may be the case that the reduced competition by loosing OZ is offset by the loss of feed and access to Star Alliance FFP members in Seoul.