Why does SkyTeam put up with AZ undercutting it?
Mar 1, 2005, 12:20 am
#1
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Why does SkyTeam put up with AZ undercutting it?
AZ is offering some unbelievable fares from TLV. (Not including tax):
NYC-Boston-Washington: $529
Chicago-Miami: $599
Toronto: $569
Rome-Milan: $309
Anywhere else in Europe: $349
Buenos Aires - Sao Paolo: $899
Tokyo/Osaka: $916
This covers the Passover period while airfares out of Israel are usually at their highest.
My question: Why does SkyTeam put up with this from a fellow member? It certainly is not going to help Continental or Delta (which are asking about $1200 for a flight to MIA) or AF/Czech Air (I don't have their prices but they are generally about $200 less than the Americans).
AZ has a constant record of undercutting every other airline's prices (at least from Israel) but I can't see why its partners don't tell it to bring up its prices or get out of SkyTeam.
NYC-Boston-Washington: $529
Chicago-Miami: $599
Toronto: $569
Rome-Milan: $309
Anywhere else in Europe: $349
Buenos Aires - Sao Paolo: $899
Tokyo/Osaka: $916
This covers the Passover period while airfares out of Israel are usually at their highest.
My question: Why does SkyTeam put up with this from a fellow member? It certainly is not going to help Continental or Delta (which are asking about $1200 for a flight to MIA) or AF/Czech Air (I don't have their prices but they are generally about $200 less than the Americans).
AZ has a constant record of undercutting every other airline's prices (at least from Israel) but I can't see why its partners don't tell it to bring up its prices or get out of SkyTeam.
Mar 1, 2005, 12:54 am
#2
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Originally Posted by Dovster
AZ is offering some unbelievable fares from TLV. (Not including tax):
NYC-Boston-Washington: $529
Chicago-Miami: $599
Toronto: $569
Rome-Milan: $309
Anywhere else in Europe: $349
Buenos Aires - Sao Paolo: $899
Tokyo/Osaka: $916
This covers the Passover period while airfares out of Israel are usually at their highest.
My question: Why does SkyTeam put up with this from a fellow member? It certainly is not going to help Continental or Delta (which are asking about $1200 for a flight to MIA) or AF/Czech Air (I don't have their prices but they are generally about $200 less than the Americans).
AZ has a constant record of undercutting every other airline's prices (at least from Israel) but I can't see why its partners don't tell it to bring up its prices or get out of SkyTeam.
NYC-Boston-Washington: $529
Chicago-Miami: $599
Toronto: $569
Rome-Milan: $309
Anywhere else in Europe: $349
Buenos Aires - Sao Paolo: $899
Tokyo/Osaka: $916
This covers the Passover period while airfares out of Israel are usually at their highest.
My question: Why does SkyTeam put up with this from a fellow member? It certainly is not going to help Continental or Delta (which are asking about $1200 for a flight to MIA) or AF/Czech Air (I don't have their prices but they are generally about $200 less than the Americans).
AZ has a constant record of undercutting every other airline's prices (at least from Israel) but I can't see why its partners don't tell it to bring up its prices or get out of SkyTeam.
I know that AZ definitely undercut the other SkyTeam members for DEL-LHR in business and coach.
Mar 1, 2005, 2:00 am
#3
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Originally Posted by GUWonder
Is it possible that other options to resolve such an "issue" would possiby involve illegal collusion/price-fixing in the mind of some regulatory/legal authorities?
I know that AZ definitely undercut the other SkyTeam members for DEL-LHR in business and coach.
I know that AZ definitely undercut the other SkyTeam members for DEL-LHR in business and coach.
Mar 1, 2005, 3:34 am
#4
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Originally Posted by Dovster
It is possible -- but I don't know if saying "We will not be partners with someone who seriously undercuts our prices" amounts to price fixing.
Mar 1, 2005, 6:10 am
#5
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Originally Posted by GUWonder
Is it possible that other options to resolve such an "issue" would possiby involve illegal collusion/price-fixing in the mind of some regulatory/legal authorities?
I know that AZ definitely undercut the other SkyTeam members for DEL-LHR in business and coach.
I know that AZ definitely undercut the other SkyTeam members for DEL-LHR in business and coach.
Mar 1, 2005, 11:31 am
#6
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Originally Posted by Dovster
...My question: Why does SkyTeam put up with this from a fellow member?...
I don't know, maybe antitrust.
Read the transcript of a famous conversation between Robert Crandall (AA) and Howard Putnam (Braniff). (Scroll down to page 46.) This wasn't price fixing (because Putnam rebuffed Crandall's demands), but did get Crandall in a lot of hot water.