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Delta, Northwest and Continental to codeshare

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Old Aug 22, 2002, 5:55 pm
  #1  
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Delta, Northwest and Continental to codeshare

I also posted this over in the CO fourm.

http://biz.yahoo.com/djus/020822/1949000875_1.html

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Old Aug 23, 2002, 7:34 am
  #2  
 
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Any definite news/info about transferring miles between the three programs?
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Old Aug 23, 2002, 8:13 am
  #3  
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So if CO/DL/NW hooks up, and UA/US links together, where does that leave AA?

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Old Aug 23, 2002, 8:21 am
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... it leaves AA in it's "Oneworld"
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Old Aug 23, 2002, 8:47 am
  #5  
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ontheroad:
... it leaves AA in it's "Oneworld"</font>
For international travel, sure.

But having 5 of its bigest competitors link up into 2 alliances kind of leave AA in a uncomfortable position domestically.
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Old Aug 23, 2002, 8:50 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by bigbroinca:
Any definite news/info about transferring miles between the three programs?</font>
Don't imagine that will happen. It hasn't with any other 'alliances'--ie. NW & CO, UA & US etc.

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Old Aug 23, 2002, 5:14 pm
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A press release states that "the agreement, when fully implemented, will...include...frequent flyer program reciprocity...".

Does anyone have any reliable information regarding the specifics of this? I worry about the specifics of program commonality, and, in particular, from whose program(s) any such commonality would be derived--given the significant differences between NW/CO's programs & DL's, especially when it comes to rules regarding elite upgrades (and specifically re: U.S. domestic 48 flights).
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Old Aug 23, 2002, 5:25 pm
  #8  
 
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Down the road all of the airlines will have codeshares with each other. It will not matter what airline you fly since you will be able to earn miles on any program you want to.
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Old Aug 23, 2002, 5:37 pm
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Overnight, NWA has raised prices on all the fares I have been looking at for the last week, DTW-PHX and DTW-MAD for example,by $100+. Hope this is not the first example of what decreased competition through code-sharing agreements is going to bring us.
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Old Aug 23, 2002, 6:22 pm
  #10  
 
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Tango:
Down the road all of the airlines will have codeshares with each other. It will not matter what airline you fly since you will be able to earn miles on any program you want to.</font>
That would kind of eliminate the purpose of FF miles, wouldn't it.

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Old Aug 23, 2002, 8:27 pm
  #11  
 
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To level their frequent flyer programs, I'm afraid that the three airlines are going to increase the mileage requirements to the highest amount needed for a destination. For instance, it's 35K to go from North America to Rio on Continental. It's 50K for Delta.
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Old Aug 23, 2002, 8:44 pm
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Anyone seeing deregulation about to come around to full circle?

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Old Aug 23, 2002, 8:50 pm
  #13  
 
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I would not be surprised that in 10 years, the programs will be much worse. 50k for a domestic award (100k with fewer restrictions), upgrades only for gold elites travelling on high fares, etc.

I expect UA to survive. If it doesn't, there may only be 2 major ff competitors (DL/CO/NW with the same restrictions and award levels and AA)
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Old Aug 24, 2002, 2:06 pm
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My guess is that CO/NW/DL did this just to scuttle the UA/US code share deal. Whatever the case, these airlines have got to find a way to cut their costs and becoming profitable. As CO has found out, trying to raise fares to compensate will just not work.

ff
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Old Aug 24, 2002, 3:18 pm
  #15  
 
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Plato90s:
So if CO/DL/NW hooks up, and UA/US links together, where does that leave AA?

</font>
AA already got its big domestic linkup - it was called TWA.

Obivously the new alliance will be formidable domestically, but it still cannot compete internationally with Star or oneworld. Even assuming this becomes a full Wings-SkyTeam merger, this alliance is still far weaker than the others when you get outside of Europe and NA.

Still, the domestic dominance may cause it to run afoul of regulators - although it does not appear that they have asked for anti-trust immunity, which would allow them to price in concert, but just the right to sell seats on eachother's flights, cooperate on FF progs, etc.

There are cynics out there who think the whole announcement was just a bluff to get the regulators to disapprove UA-US. Even if that's not true, this is only an announcement of intent, but the devil is in the details, and CO is notoriously difficult to negotiate with. It wouldn't surprise me at all to see egos kill the whole thing.

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