SkyTeam May be Getting Bigger!
Aug 22, 2002, 8:32 pm
#1
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SkyTeam May be Getting Bigger!
Very early and perhaps premature, but Dow Jones is reporting that DL will enter into a codeshare pact with CO and NW. And that Wings Alliance may be integrated into SkyTeam.
We all need to watch this develop, but it could be a rapid and dramatic advance for SkyTeam... the addition of KLM, CO and NW.... who knows what will eventually happen?
We all need to watch this develop, but it could be a rapid and dramatic advance for SkyTeam... the addition of KLM, CO and NW.... who knows what will eventually happen?
Aug 22, 2002, 11:59 pm
#2
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I'd appreciate an integration of Skyteam & Wings (= more choices of airlines 
).
Some time ago there were already rumours about DL/CO with a scenario of American buying TWA, United buying US Airways and Delta buying Continental. Maybe a strategic partnership between Delta and Continental is the beginning of a slow take-over?
).Some time ago there were already rumours about DL/CO with a scenario of American buying TWA, United buying US Airways and Delta buying Continental. Maybe a strategic partnership between Delta and Continental is the beginning of a slow take-over?
Aug 23, 2002, 5:29 am
#3
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Information source: http://www.nytimes.com/2002/08/23/business/23AIR.html
Delta Air Lines, Continental Airlines and Northwest Airlines are expected to announce a partnership today that will allow them to book passengers on one another's flights on certain routes, according to people with knowledge of the discussions.
The partnership, known as a code-share alliance, will essentially allow the airlines to extend their route structures by proxy. Travelers will be able to fly part of a trip on one carrier and the rest of the trip on another if a single carrier does not cover the entire route. Passengers can choose which frequent-flier club will get the miles for the trip.
Airlines generally describe this as a marketing partnership, because they do not share revenue from the flights. Each carrier is paid only for its particular leg of the trip. But because the extended route structure attracts passengers who might otherwise have flown on a rival carrier, airlines generally record a rise in revenue because of a partnership.
Continental and Northwest, for example, already have a similar code-share arrangement, and each one receives an additional $200 million a year in revenue because of it, executives at the airlines have said.
The agreement among the three airlines will last 10 years, people with knowledge of the discussions said. The code-sharing deal will apply to some routes in the United States and to others in Asia, the Americas and Europe. Some foreign partners of the three airlines could also be involved.
Talks on the code-sharing agreement began in earnest about a month ago.
The three airlines declined yesterday to comment on the announcement, which is expected today.
"We are in talks," said Catherine Stengel, a spokeswoman for Delta, which is already part of the SkyTeam alliance that includes Air France, Alitalia and Korean Air, among others.
The Department of Transportation will have 30 days to review the arrangement to see if it hinders competition, although that period can be extended to six months.
United Airlines and US Airways reached a code-share agreement last month that is under review by the Transportation Department.
Leo F. Mullin, chief executive of Delta, the nation's third-largest airline, said at the time that he would seek a partnership of his own to fight the increased competition presented by a United-US Airways alliance.
Mr. Mullin said he had felt threatened by the alliance because US Airways, which filed for bankruptcy protection on Aug. 11, was Delta's biggest competitor on the East Coast.
One airline analyst, Michael Boyd in Evergreen, Colo., said the latest partnership "sounds like a home run."
"The Northwest and Continental alliance has been one typified by increased customer convenience and options, with no reduced competition," Mr. Boyd said. "Depending on how this is done, and I assume they'll do it in the same manner, everyone wins."
Facing losses that amounted to $1.4 billion in the second quarter, the major carriers have begun cutting costs while trying to figure out ways to generate revenue. Continental said on Tuesday that it was reducing capacity and would begin charging low-fare passengers for certain services. US Airways said on Wednesday that it was cutting 13 percent of its 1,550 daily mainline flights as an initial step in its restructuring.
Delta Air Lines, Continental Airlines and Northwest Airlines are expected to announce a partnership today that will allow them to book passengers on one another's flights on certain routes, according to people with knowledge of the discussions.
The partnership, known as a code-share alliance, will essentially allow the airlines to extend their route structures by proxy. Travelers will be able to fly part of a trip on one carrier and the rest of the trip on another if a single carrier does not cover the entire route. Passengers can choose which frequent-flier club will get the miles for the trip.
Airlines generally describe this as a marketing partnership, because they do not share revenue from the flights. Each carrier is paid only for its particular leg of the trip. But because the extended route structure attracts passengers who might otherwise have flown on a rival carrier, airlines generally record a rise in revenue because of a partnership.
Continental and Northwest, for example, already have a similar code-share arrangement, and each one receives an additional $200 million a year in revenue because of it, executives at the airlines have said.
The agreement among the three airlines will last 10 years, people with knowledge of the discussions said. The code-sharing deal will apply to some routes in the United States and to others in Asia, the Americas and Europe. Some foreign partners of the three airlines could also be involved.
Talks on the code-sharing agreement began in earnest about a month ago.
The three airlines declined yesterday to comment on the announcement, which is expected today.
"We are in talks," said Catherine Stengel, a spokeswoman for Delta, which is already part of the SkyTeam alliance that includes Air France, Alitalia and Korean Air, among others.
The Department of Transportation will have 30 days to review the arrangement to see if it hinders competition, although that period can be extended to six months.
United Airlines and US Airways reached a code-share agreement last month that is under review by the Transportation Department.
Leo F. Mullin, chief executive of Delta, the nation's third-largest airline, said at the time that he would seek a partnership of his own to fight the increased competition presented by a United-US Airways alliance.
Mr. Mullin said he had felt threatened by the alliance because US Airways, which filed for bankruptcy protection on Aug. 11, was Delta's biggest competitor on the East Coast.
One airline analyst, Michael Boyd in Evergreen, Colo., said the latest partnership "sounds like a home run."
"The Northwest and Continental alliance has been one typified by increased customer convenience and options, with no reduced competition," Mr. Boyd said. "Depending on how this is done, and I assume they'll do it in the same manner, everyone wins."
Facing losses that amounted to $1.4 billion in the second quarter, the major carriers have begun cutting costs while trying to figure out ways to generate revenue. Continental said on Tuesday that it was reducing capacity and would begin charging low-fare passengers for certain services. US Airways said on Wednesday that it was cutting 13 percent of its 1,550 daily mainline flights as an initial step in its restructuring.
Sep 17, 2002, 7:16 am
#4
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Information source: http://www.arabia.com/afp/business/e...290458,00.html
Air France is holding talks with KLM about the Dutch carrier joining the SkyTeam alliance of airlines, the French carrier said.
The talks are part of a commercial alliance announced in August involving three big US carriers: Air France's SkyTeam partner Delta, Continental and Northwest, KLM's partner, an Air France spokeswoman said.
KLM's membership in SkyTeam depends however on the approval of US authorities, which are expected to make a decision by the end of the year, the spokeswoman said.
SkyTeam, created in June 2000, currently includes AeroMexico, Air France, Alitalia, CSA Czech Airlines, Delta Airlines and Korean Air.
She also denied a newspaper report saying that Air France planned to take a stake in KLM once the French government reduced its holding in the French carrier.
KLM spokesman Frank Houden also rejected the report, saying: "This is not true, we are not at all in advanced talks to sell a stake."
He added that KLM continued to hold informal, exploratory talks with Air France and British Airways aimed at strategic cooperation.
KLM has in the past come close to merging with British Airways and Alitalia of Italy.
The prices of shares in the two companies surged in morning trading on the report, before it was denied.
KLM shares soared 8.5 percent to 10.55 euros in Amsterdam and Air France shares jumped 6.13 percent to 11.78 euros.
Air France is holding talks with KLM about the Dutch carrier joining the SkyTeam alliance of airlines, the French carrier said.
The talks are part of a commercial alliance announced in August involving three big US carriers: Air France's SkyTeam partner Delta, Continental and Northwest, KLM's partner, an Air France spokeswoman said.
KLM's membership in SkyTeam depends however on the approval of US authorities, which are expected to make a decision by the end of the year, the spokeswoman said.
SkyTeam, created in June 2000, currently includes AeroMexico, Air France, Alitalia, CSA Czech Airlines, Delta Airlines and Korean Air.
She also denied a newspaper report saying that Air France planned to take a stake in KLM once the French government reduced its holding in the French carrier.
KLM spokesman Frank Houden also rejected the report, saying: "This is not true, we are not at all in advanced talks to sell a stake."
He added that KLM continued to hold informal, exploratory talks with Air France and British Airways aimed at strategic cooperation.
KLM has in the past come close to merging with British Airways and Alitalia of Italy.
The prices of shares in the two companies surged in morning trading on the report, before it was denied.
KLM shares soared 8.5 percent to 10.55 euros in Amsterdam and Air France shares jumped 6.13 percent to 11.78 euros.
Sep 20, 2002, 8:19 am
#5
Join Date: May 2000
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http://www.flyertalk.com/forum/Forum21/HTML/007370.html
SkyTeam officials from member airlines speaking at an alliance media briefing in Atlanta yesterday made it clear that strategic planning is proceeding on the clear assumption that KLM, Northwest Airlines and Continental Airlines will be the next members pending regulatory and other hurdles. In fact, a representative of KLM management attended the briefing incognito at the invitation of the current SkyTeam members. Alitalia said it will not object to KLM entering the alliance despite the ugly breakup of their own proposed operational integration in April 2000. “KLM was a good partner back then, so why shouldn't that be the case again,” an Alitalia official said in Atlanta. Alitalia and KLM have agreed to arbitrate damages over the ending of their partnership.
Separately, Delta, Northwest and Continental have requested a decision from the US Dept. of Transportation on their proposed codesharing alliance by Dec. 6.
http://www.atwonline.com/indexfull.cfm?newsid=2305
SkyTeam officials from member airlines speaking at an alliance media briefing in Atlanta yesterday made it clear that strategic planning is proceeding on the clear assumption that KLM, Northwest Airlines and Continental Airlines will be the next members pending regulatory and other hurdles. In fact, a representative of KLM management attended the briefing incognito at the invitation of the current SkyTeam members. Alitalia said it will not object to KLM entering the alliance despite the ugly breakup of their own proposed operational integration in April 2000. “KLM was a good partner back then, so why shouldn't that be the case again,” an Alitalia official said in Atlanta. Alitalia and KLM have agreed to arbitrate damages over the ending of their partnership.
Separately, Delta, Northwest and Continental have requested a decision from the US Dept. of Transportation on their proposed codesharing alliance by Dec. 6.
http://www.atwonline.com/indexfull.cfm?newsid=2305