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Hard Feelings from CAL - DAL Split

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BID

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Nov 14, 2004
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Hard feelings from Continental-Delta split?


javascript:void('Recommend')USA TODAY

Continental's break-up with the SkyTeam Alliance and partner Delta may not be a smooth one. The Washington Post writes that Delta on Tuesday "formally objected to a request by Continental Airlines for antitrust approval that would allow Continental to deepen ties with major airline partners in the United States and overseas. Continental is seeking immunity from antitrust rules so it can partner with United and Lufthansa on transatlantic flights, and eventually on trips to Latin America and Asia. Without clearance from the Department of Transportation, Continental would be breaking U.S. laws that forbid airlines from sharing information on schedules, costs or the prices they plan to charge."
Delta's objection: That Continental's proposed ties with United would give the duo an unfair presence on routes to Brazil and China. For its part, Delta has been granted wide-ranging immunity to work with its own international partner, Air France-KLM. "Continental attributed Delta's filing to industry rivalry," the Post writes. "From what we have seen, there's nothing new here," Continental spokeswoman Mary Clark says in a prepared statement quoted by the Post. "It looks like another attempt by the world's largest airline to prevent others from competing with it. We are confident the government will see through Delta's attempt to suppress competition."
The Delta-Continental alliance flap comes as airlines increasingly look to alliances and partnerships as a way to benefit from pooling resources with other carriers. The Post notes "alliance-related antitrust fights are becoming increasingly common in the highly competitive airline world. Airlines see alliances as one of the few tools the industry has to bring about consolidation across borders." Of course, another U.S. carrier –- American –- is caught up in antitrust talks in an effort to bolster its oneworld alliance ties with European partners British Airways and Iberia.
 
Delta's immunity from anti-trust was granted under a very pro business administration. It certainly would be interesting if the influence of the new pro-labor administration denied CAL these same privileges. Seems like the timing at CAL is never quite right.
 
IMHO Continental's leaving the alliance they should be joining.
 
Second Fiddle? I thought that was our slot, after Air France - KLM. I always thought "the more the merrier" until DAL flying was transferred to AF and Alaska became a virtual "connection" carrier.

Probably better to be second violin in the Vienna Philharmonic than the alternative ....

CO is a good airline, sincerely, they will be missed.
 
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It's pretty simple, CAL and UAL are going to make for some tough competition for Delta.

I am glad we are leaving the Sky Team and Delta's objection of our partnership with UAL only reinforces the business plan we are undertaking.

(that's my logic, if Delta dose not like what we are doing, it must be good!)
 
Remember one thing. CAL and UAUA have a few east coast bases. There is little overlap, but it may mean some divesting of slots.
That is why CAL and DAL would have made a bad choice. Way too much over lap in the NYC area. It would have lead to job losses.
 
It's pretty simple, CAL and UAL are going to make for some tough competition for Delta.

I am glad we are leaving the Sky Team and Delta's objection of our partnership with UAL only reinforces the business plan we are undertaking.

(that's my logic, if Delta dose not like what we are doing, it must be good!)

Have you seen the business decisions by UAL management lately? :smash: If there is such a strong competition potential, then why did CAL backout of a potential merger with UAL?

As you said:

I'll trust my management's analysis over a CAL line pilot...
 

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