Originally Posted by
oliver2002
Flights sell well using the cartels due to attractive network, frequency and integration into the sales force in the relevant market. Soft and hard product play a relatively minor role.
But we're behaving as if SK didn't already have some form of this. No, they weren't allowed into the TATL agreement in *A, but as part of a network, they had decent pricing, the network was relatively attractive, and there good frequency.
No one here really articulates how getting into the Sky Team JV increases the value to SK passengers. What we are mostly hearing is that SK will potentially be able to charge more to a market that is already price sensitive. So actually the hard and soft product do matter, because how will you motivate people paying more for the same service with only the alliance being different?