IAG buys Air Europa…..Back to Forum
So Iberia takes over the brand “Air Europa” but maintains it, and what happens next?
A)Will there be two operators flying across the Atlantic and into Europe in parallel? i.e.Air Europa versus Iberia, Iberia Express and Vueling.
B)Will Air Europa replace LEVEL? – if it does replace it from one airport it should replace it from them all.
C)So if LEVEL is destined for the dustbin then what happens with its operators (“Open Skies” and Anisec”) or has that policy not been thrown out of the window?
There seems to be a real mix-up to be sorted out if this take-over goes through.4 Nov 2019
I may be totally wrong here but I cannot see how EU competition authorities can intervene here, given the virtual LH Group monopoly in place in much of central Europe – LH, EW, LX and OS. In both Spain and Germany, competition is provided by FR and other low cost airlines.4 Nov 2019
given the virtual LH Group monopoly in place in much of central Europe
You’re right, but for me this grouping also should never happened .
I’ve argued this point before on the forum.
The laws protecting us from monopolistic /cartel business practices just don’t seem to apply to the airline industry.
OK, I get that airline alliances might bring benefits to us all , via codeshares and seamless travel through larger networks .Importantly, the business model of these alliances allows for independent thinking and decision making at local level.
However, I’d argue the opposite with these airline business groupings , and it might be semantics , but for all intensives purposes IAG, LH & AF/KLM now operate as mega carriers. IAG get a bad rep , but the LH group is just as bad, pretty much eliminating competition by flexing fares, timetables and routings to turn central Europe into a one airline ( 3 different logo’s ) monopoly. You just have to look at how many carriers in LH’s area of influence that have gone under to realise that it’s not a level playing field !!
You might correctly quote FR as a competitor, and a reason why legacy carriers band together, but I’d argue that FR generally seeks out its own demographic audience. Creating their own new traffic on niche routings that the legacies just don’t touch.
1 user thanked author for this post.5 Nov 2019