Airline Mogul Forum

Airline Mogul => General Chat => Topic started by: Air Nostrum on December 16, 2012, 04:28:38 pm

Title: Alliance - question
Post by: Air Nostrum on December 16, 2012, 04:28:38 pm

Hi there,

I would like to know if, in an alliance, having too many of the same routes drives down the income of the other members of the alliance ?

Thanks for the help.

Title: Re: Alliance - question
Post by: Calebrw on December 16, 2012, 09:30:43 pm

If you mean by the same two destinations:

For instance if Airline A, Airline B and Airline C all are part of Alliance Y and they have a route each between Airport 1 and Airport 2, then the income derived by each airline is less.

For instance it might be €800 for one airline running the route and €600 with two airlines and then €450 for three airline. Three might be €450. Those are just examples showing the fares go down based on competition on the route.

The only thing that I don't know if if there is a different effect on profits based on whether you're competing with an alliance member or not, but I'd think not based on experience.