The whole topic about airline consolidation and cooperation is very intresting and changing almost every day from a industry flying high one minute and down the next. The article "Consolidation: Painful progress" gave a good impression about the circumstances in the industry. I am not quite sure what to think about all this. On the one hand experts say that alliances won´t have a future any longer, because synergies are exploited. On the other hand the industry does no have any other possibility at the moment. The costs are just too high to consolidate. Even the majors in europe, america and asia does not have the financial basis to do so.
I think, the process of consolidation is necessary, but impossible to implement in the current economic situation. Unless the industry won´t cut the capacities they won´t get anywhere.
Whta do you think? When will the airline business become more profitabel and maybe a eligible candidate for starting the consolidation preocess?
Do you think, the structure of alliances will come to a soon end? Alliances are the last step before consolidation, but most of the efforts were stopped before coming to an end. Just thinking about the american market.
And another aspect: the LCC. The market is also flooded with carriers of this type. They have to react as well. But how? Alliances are no real possibility for Low- and No-Frills, arent´t they?
I would really love to discuss this exciting topic with all of you.
Greetings,
Maria