Originally Posted by
moondog
Do you think KDB's tune might change if KE were to go into attack mode by significantly undercutting OZ on fares in markets where they compete? I don't know many investors who like holding loss-making companies, regardless of their personal attachments.
The merger offer is a carrot, while "we're going to drive you out of business" (obviously, they would never state this publicly) is a stick.
It's interesting that some smaller economies like Taiwan can support 3 airlines and still compete while larger economies like Korea have trouble supporting 2 airlines. Obviously the environment is very different but why can't Asiana compete effectively by itself than to have to sell out to Korean Air?