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Alliance - question

Air Nostrum

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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.
Sincerely
Air Nostrum - El Cielo es Nostrum - The Heaven is Nostrum - Der Himmel ist Nostrum


Calebrw

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Reply #1 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.


 

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