AZ to end AF/KL partnership from january 2017
#91
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Hong Kong
Programs: FB AF Silver, BA Gold
Posts: 12,930
But it is likely that it be an AFKL requirement.
#92
FlyerTalk Evangelist
Join Date: Feb 2000
Location: London, UK and Southern France
Posts: 16,726
I don't mind that DL moved the aircraft. I'd be perfectly happy to fly VS and/or AF. But I can't.
That's correct.
AF and VS did have a general ticket interline agreement as most legacy airlines do. I remember a few years back buying a CDG-LHR-LAX return ticket in Business at an attractive discount price on VS, where the first and last legs were operated by AF (CDG-LHR-CDG). This interline agreement is probably still valid.
AF and VS did have a general ticket interline agreement as most legacy airlines do. I remember a few years back buying a CDG-LHR-LAX return ticket in Business at an attractive discount price on VS, where the first and last legs were operated by AF (CDG-LHR-CDG). This interline agreement is probably still valid.
#93
FlyerTalk Evangelist
Join Date: Feb 2000
Location: London, UK and Southern France
Posts: 16,726
No, that is not what needed to be demonstrated. What needed to be demonstrated for your assertion to be true was not that one individual in one particular situation is negatively affected but that JVs generally affect individuals negatively. This is still demonstrandum as of now.
Where does this notion come from that just because an airline participates in two different JVs, those JVs need to be merged?
VS does not participate in any alliance. They do not participate in any JV other than the one with their parent company. The JV with VS is designed to serve the UK market. VS is not interested at all in the tatl market in general, just the US-UK market. There are pretty good reasons for that. A quick look at VS route network will indicate why. The members of the ST JV are all network carriers with a propensity to serve the wider European market.
One does not need to be a genius to realise that it might not make a huge amount of sense for VS not to be part of the wider JV. One does not need to invoke theories of Machiavellian plotting and scheming by DL to explain why the two JVs are kept separate.
Would it benefit consumers for the two JVs to be joined? Perhaps. It would certainly benefit SEA-Flyer. But even if it is the case that it would benefit consumers as a whole for the two JVs to be merged, it does not follow from this that JVs are anti-consumer. This is an archetypal non-sequitur if there ever was one.
If VS and AF really wanted VS to provide through itineraries on each other, this would have been negotiated. It is not a question of "fault" on anybody's part. Apart from some very specific circumstances that do not apply here, there is no duty on any airline to conclude an agreement with another airline.
VS does not participate in any alliance. They do not participate in any JV other than the one with their parent company. The JV with VS is designed to serve the UK market. VS is not interested at all in the tatl market in general, just the US-UK market. There are pretty good reasons for that. A quick look at VS route network will indicate why. The members of the ST JV are all network carriers with a propensity to serve the wider European market.
One does not need to be a genius to realise that it might not make a huge amount of sense for VS not to be part of the wider JV. One does not need to invoke theories of Machiavellian plotting and scheming by DL to explain why the two JVs are kept separate.
Would it benefit consumers for the two JVs to be joined? Perhaps. It would certainly benefit SEA-Flyer. But even if it is the case that it would benefit consumers as a whole for the two JVs to be merged, it does not follow from this that JVs are anti-consumer. This is an archetypal non-sequitur if there ever was one.
are VS and AF somehow at fault, despite having an interline agreement?
Last edited by NickB; Dec 9, 16 at 6:39 am
#94
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: Platinum: KL Gold: A3 Rust: BA
Posts: 25,369
But the initial "notion" was that AFKL would be involved in the purchase of VS, if only to overcome the EU ownership rules that Delta were restricted by.
The initial plan was also that VS would possibly join Skyteam and seek to enter the JV as AZ had done a few years previously.
But Delta clearly had second thoughts about the whole thing, and further cannily sought and obtained anti-trust immunisation for an overlapping set/subset of routes for which an existing arrangement - albeit with different members - was already in force, and which, in my opinion, Delta should have been confined.
The airlines love to crow about the benefits to customers when this is a by-product of their own self-interest. But in this case, AFKL (and AZ) were cut out of the action and effectively set up a competing alliance. Which would be great for the customer but by apparently restricting what tickets they actually offer for sale, they are restricting customer choice and competition.
It's probably good for Delta that I am not on a competition committee!
VS does not participate in any alliance. They do not participate in any JV other than the one with their parent company. The JV with VS is designed to serve the UK market. VS is not interested at all in the tatl market in general, just the US-UK market. There are pretty good reasons for that. A quick look at VS route network will indicate why. The members of the ST JV are all network carriers with a propensity to serve the wider European market.
But VS is a strange beast anyway.
That they were allowed to carve out a second such joint venture, to me, is anti-competitive.
Does DL/VS compete with fares offered by DL/AF/KL/AZ? Probably not. Which would indicate that Delta can operate as if it has a single immunised agreement - although it doesn't - and not extend to its customers (and those of the various partners) any benefits that flow from that.
DL basically, to borrow a phrase much in vogue in the UK these days, wants to have its cake and eat it.
Would it benefit consumers for the two JVs to be joined? Perhaps. It would certainly benefit SEA-Flyer. But even if it is the case that it would benefit consumers as a whole for the two JVs to be merged, it does not follow from this that JVs are anti-consumer. This is an archetypal non-sequitur if there ever was one.
So DL's intersection within both alliances gives its customers greater choice and benefits than accrue to the customers of its partners, despite the huge overlap between Delta's agreements.
If Delta wasn't happy for its partners' customers to benefit in such ways, then I don't think that Delta's customers should benefit.
If VS and AF really wanted VS to provide through itineraries on each other, this would have been negotiated. It is not a question of "fault" on anybody's part. Apart from some very specific circumstances that do not apply here, there is no duty on any airline to conclude an agreement with another airline.
AF and VS can't do much as anything more than they already have - an interline agreement - would probably need government clearance. They cannot work within the scope of the existing agreements, because Delta reneged on its early thoughts of integrating VS into the existing arrangement.
But I am unclear what sort of agreement, short of this clearly unlikely JV. And as you say, VS doesn't want European feed as it never tried to replace the feed that BD used to feed it.
#95
Join Date: Oct 2009
Posts: 4,091
AF-KL back at MXP?
[@Moderators: please feel free to merge this thread with http://www.flyertalk.com/forum/air-f...ry-2017-a.html should you consider the latter more appropriate territory to discuss the above]
According to an Italian web-only newspaper, both AF and KL could re-start services from MXP as early as January 14th, even though this move (reportedly supported by a slot request) would only concern the first morning flights to CDG and AMS at [respectively] 7:40AM and 6:30AM. The soon-to-end partnership with AZ currently allows both AF and KL to exploits a number of slots at the other airport, LIN, resulting in a significant number of services to and from their hubs.
G
According to an Italian web-only newspaper, both AF and KL could re-start services from MXP as early as January 14th, even though this move (reportedly supported by a slot request) would only concern the first morning flights to CDG and AMS at [respectively] 7:40AM and 6:30AM. The soon-to-end partnership with AZ currently allows both AF and KL to exploits a number of slots at the other airport, LIN, resulting in a significant number of services to and from their hubs.
G
#96
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Hong Kong
Programs: FB AF Silver, BA Gold
Posts: 12,930
An interline agreement is just a generic agreement that allows a TA to include the two airlines on the same ticket. I apologize for trying here to use layman terms, not legalese, and my terms might be imprecise. Please be tolerant.
This is a simple commercial agreement that needs no government approval. Of course, the practical issue is what fares the system will offer, if any, on some combined itinerary. And now there are none loaded or simply IATA full fare.
As I mentioned before, VS offered reasonably-attractive fares in J to France, including to/from HKG where I am based (connection in LHR could be BA or AF). That has been discontinued since the DL/VS JV. It could be that the agreement simply prohibits any DL/VS ticketing to/from Europe when transiting in UK.
#97
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: Platinum: KL Gold: A3 Rust: BA
Posts: 25,369
It seems Alitalia's situation is far more precarious than any of us thought; at Monday's board meeting they may be pleased to see a rapid improvement in their revenues...until they realise the shenanigans this weekend that caused the flood of cash to flow into Alitalia's coffers.
The article also mentions the possibility of AFKL's slots at LIN reverting back to their actual owner, AZ, should all the negotiations surrounding AZ go badly.
So maybe AFKL are just letting nothing to chance...
I nodi principali da sciogliere, preliminari al nuovo piano industriale, riguardano le alleanze, quella con Air France-Klm, che scade il 13 gennaio, e quella Atlantica, con Air France, Klm e Delta, in scadenza nel 2022. Alitalia nella seconda è penalizzata, perchè essendo stata negoziata in condizioni di debolezza, non permette alla compagnia di giocare alla pari. La divisione dei ricavi infatti avviene secondo il «ferro», cioè gli aerei, messi a disposizione delle rotte in comune. Alitalia ne ha meno degli altri e incassa di meno (il 15% circa). Rinegoziare le quote non è facile, ma è quello che si cerca di fare, per avere più peso e aumentare i profitti. Così rientrano nelle discussioni gli altri accordi con Air France, con cui vengono operati in stretta collaborazione i collegamenti Italia-Francia. Se rottura dovesse esserci, Air France-Klm perderebbe un consistente numero di slot a Linate, prestati da Alitalia, che ne tornerebbe in possesso. Quegli slot valgono molto, perchè permettono alle compagnie di alimentare i propri hub di Parigi e Amsterdam; Alitalia potrebbe rinnovare i patti su Linate purchè cambi l'alleanza Atlantica, su cui AF e Klm hanno voce in capitolo.
The article also mentions the possibility of AFKL's slots at LIN reverting back to their actual owner, AZ, should all the negotiations surrounding AZ go badly.
So maybe AFKL are just letting nothing to chance...
Originally Posted by Il Giornale
I nodi principali da sciogliere, preliminari al nuovo piano industriale, riguardano le alleanze, quella con Air France-Klm, che scade il 13 gennaio, e quella Atlantica, con Air France, Klm e Delta, in scadenza nel 2022. Alitalia nella seconda è penalizzata, perchè essendo stata negoziata in condizioni di debolezza, non permette alla compagnia di giocare alla pari. La divisione dei ricavi infatti avviene secondo il «ferro», cioè gli aerei, messi a disposizione delle rotte in comune. Alitalia ne ha meno degli altri e incassa di meno (il 15% circa). Rinegoziare le quote non è facile, ma è quello che si cerca di fare, per avere più peso e aumentare i profitti. Così rientrano nelle discussioni gli altri accordi con Air France, con cui vengono operati in stretta collaborazione i collegamenti Italia-Francia. Se rottura dovesse esserci, Air France-Klm perderebbe un consistente numero di slot a Linate, prestati da Alitalia, che ne tornerebbe in possesso. Quegli slot valgono molto, perchè permettono alle compagnie di alimentare i propri hub di Parigi e Amsterdam; Alitalia potrebbe rinnovare i patti su Linate purchè cambi l'alleanza Atlantica, su cui AF e Klm hanno voce in capitolo.
Last edited by irishguy28; Dec 10, 16 at 2:51 pm
#98
Join Date: Feb 2002
Location: Montreux CH
Programs: FB Platinum, M&M FTL, BA Blue
Posts: 9,069
By shenanigans, you mind the absurd fare from Florence to Dusseldorf via anywhere except Atlantis being discussed over in the Premium Mileage deals forum? I would have thought that might risk finally bankrupting them!
#100
It seems Alitalia's situation is far more precarious than any of us thought; at Monday's board meeting they may be pleased to see a rapid improvement in their revenues...until they realise the shenanigans this weekend that caused the flood of cash to flow into Alitalia's coffers.
#104
FlyerTalk Evangelist
Original Poster

Join Date: Aug 2009
Location: Paris, France
Programs: AF/KL Flying Blue Platinum for life/Club2000 Ultimate, Accor ALL Diamond
Posts: 15,985
How many slots belong to AZ ? I think AF owns some. Because they were serving LIN long before the AZ deal or even Skyteam ?
#105
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: Platinum: KL Gold: A3 Rust: BA
Posts: 25,369
I don't know - perhaps all of them?
AF and AZ have beenco-operating for far longer than any of the current arrangements and it would be a rather strange slot-lease deal if it was for perpetuity.
The accuracy/thoroughness of the reporting leaves lots to be desired!
AF and AZ have beenco-operating for far longer than any of the current arrangements and it would be a rather strange slot-lease deal if it was for perpetuity.
The accuracy/thoroughness of the reporting leaves lots to be desired!
Originally Posted by Les Echos
Les discussions avec les Français auraient achoppé sur la question des créneaux horaires à l'aéroport de Milan-Linate, actuellement utilisés par Air France et KLM pour desservir Paris et Amsterdam et alimenter leurs vols transatlantiques, et qu'Alitalia voudrait récupérer pour lancer ses propres vols transatlantiques.