Rumor: CX to leave OW for Star: UA implications?
#47
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I don't think anyone is arguing that CX would become independent. Rather the assumption is that in the event of CX leaving OW, *A would be the natural place for them to go (mainly based on their relationship with CA).
#48
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Whatever else occurs, CX won't be forced out. The rumors are based on the contention that CX would leave OW in protest in the event that a Chinese carrier is admitted to OW. I personally don't buy this argument.
I don't think anyone is arguing that CX would become independent. Rather the assumption is that in the event of CX leaving OW, *A would be the natural place for them to go (mainly based on their relationship with CA).
I don't think anyone is arguing that CX would become independent. Rather the assumption is that in the event of CX leaving OW, *A would be the natural place for them to go (mainly based on their relationship with CA).
#49
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Well the way UA allows for CX on their website and the cold shoulder to SQ, you would only know who is *A by the partner link. Frankly what would CX in *A add that you can't do now? Tired of the animal farm way *A is structured...some carriers are more equal than others...then u have these fringe partners that compete directly with *A.
just make sure CX signs a prenup.
just make sure CX signs a prenup.
#50
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#52
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#53
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Well the way UA allows for CX on their website and the cold shoulder to SQ, you would only know who is *A by the partner link. Frankly what would CX in *A add that you can't do now? Tired of the animal farm way *A is structured...some carriers are more equal than others...then u have these fringe partners that compete directly with *A.
just make sure CX signs a prenup.
just make sure CX signs a prenup.
As a customer, in theory, I would prefer that *A operate more like a giant JV in order to open up flight options where I can use my benefits. A flight segment on a non-*A airline feels like "wasted money," but there's only so much of a premium I'm willing to pay before an all-*A itinerary feels like "wasted money" too. In practice, though, if this were to come to pass, I think international travel turns into an oligopoly similar to the domestic US market.
And, as was pointed out, MileagePlus award flights on CX would definitely be a nice benefit to have, as would CX lounge access. For that matter, it would be nice to be able to earn PQMs and PQDs on CX flights. Even with the current structure of the PQD program, requiring 016 tickets, the fact that UA lists so many CX connections on its website means that PQD earning would be a real possibility on many CX routes.
Ah, good point. Still, if CX were to make this move voluntarily, it seems like it would have more to do with wanting to be closer to CA than being upset about CZ.
#54
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The whole "CX would leave OW because they're pissed about CZ joining" sounds to me like classic internet forum speculation with no basis in reality.
#55
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Perhaps it would allow CX to through check in to UA flights, which it can't do now (yes, still pissed about nearly missing a connection to EWR on UA due to this almost a year ago - there should at least be a notification if UA is going to sell this).
I don't believe this is the case...I believe the codesharing is putting AC codes on CX flights beyond HKG to other south asian cities, and CX codes on AC's flights to Canadian cities beyond YVR/YYZ, and allows earning on them. But they aren't codesharing on any Canada (YVR/YYZ-HKG and vv.) flgihts. At least that's how I read this press release on it.
I think you're confusing JVs and alliances, and sounds even like you are insinuating they are the same thing. They're not. Alliances are basically a marketing partnerships between the carriers, which as part of it, allows customers on one carrier to accrue miles on another. Through flights doesn't even require an alliance, just an interline agreement. JVs are where the airlines can basically 'collude' to jointly set prices, schedules, fares and completely market flights together. A JV eliminates competition between carriers, but an alliance keeps it, because while one may be able to book a flight on airline A on airline B's website, or earn miles on airline A while flying on airline B, A and B both independently build their own schedules, independently decide on capacity, independently file pricing, etc., and in effect, is no different than how they compete, with say, other airlines in different alliances.
I guess antitrust JV agreements allowed like AC-LH-UA on the Atlantic and UA-NH on the Pacific won approval because there is enough competition. It seems like CX wouldn't get approval to join Star with more protective countries (like Canada) unless more competition were to develop.
Let's see what happens if China Southern moves to Oneworld, and how CX reacts. Until then its all pretty hypothetical. Too bad!
Let's see what happens if China Southern moves to Oneworld, and how CX reacts. Until then its all pretty hypothetical. Too bad!
#56
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Anyway, I suppose you could argue that being in the same alliance might motivate them to align their back-end systems, but I have my doubts.
I believe you mean "through fares" here, not "through flights" -- there's no such thing as a through (direct -- think the Island Hopper) flight with a change of carrier. But, yes, you're right -- your BKK-EWR trip was likely on a through fare, as UA loves to partner with CX for those short-hauls. All the airlines need to do is agree how to split the revenue on those flights and they can be filed.
#57
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Perhaps it would allow CX to through check in to UA flights, which it can't do now (yes, still pissed about nearly missing a connection to EWR on UA due to this almost a year ago - there should at least be a notification if UA is going to sell this).
I don't believe this is the case...I believe the codesharing is putting AC codes on CX flights beyond HKG to other south asian cities, and CX codes on AC's flights to Canadian cities beyond YVR/YYZ, and allows earning on them. But they aren't codesharing on any Canada (YVR/YYZ-HKG and vv.) flgihts. At least that's how I read this press release on it.
I think you're confusing JVs and alliances, and sounds even like you are insinuating they are the same thing. They're not. Alliances are basically a marketing partnerships between the carriers, which as part of it, allows customers on one carrier to accrue miles on another. Through flights doesn't even require an alliance, just an interline agreement. JVs are where the airlines can basically 'collude' to jointly set prices, schedules, fares and completely market flights together. A JV eliminates competition between carriers, but an alliance keeps it, because while one may be able to book a flight on airline A on airline B's website, or earn miles on airline A while flying on airline B, A and B both independently build their own schedules, independently decide on capacity, independently file pricing, etc., and in effect, is no different than how they compete, with say, other airlines in different alliances.
I don't believe this is the case...I believe the codesharing is putting AC codes on CX flights beyond HKG to other south asian cities, and CX codes on AC's flights to Canadian cities beyond YVR/YYZ, and allows earning on them. But they aren't codesharing on any Canada (YVR/YYZ-HKG and vv.) flgihts. At least that's how I read this press release on it.
I think you're confusing JVs and alliances, and sounds even like you are insinuating they are the same thing. They're not. Alliances are basically a marketing partnerships between the carriers, which as part of it, allows customers on one carrier to accrue miles on another. Through flights doesn't even require an alliance, just an interline agreement. JVs are where the airlines can basically 'collude' to jointly set prices, schedules, fares and completely market flights together. A JV eliminates competition between carriers, but an alliance keeps it, because while one may be able to book a flight on airline A on airline B's website, or earn miles on airline A while flying on airline B, A and B both independently build their own schedules, independently decide on capacity, independently file pricing, etc., and in effect, is no different than how they compete, with say, other airlines in different alliances.
#58
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Isn't CX in pretty bad shape? Would that be something to do when an airline is in such condition? Isn't *A already too strong in Asia and the existing partners (NH, OZ, BR to the north and SQ, TG to the south) would oppose?
Probably a posturing thing, right?
Probably a posturing thing, right?
#60
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