Post by Deleted on Apr 20, 2009 22:52:51 GMT 1
BA is one of seven airlines under investigation by the European Commission. Following the Open Sky's agreement between Europe and America, the airlines concerned appear are forming packs. These packs seem to be intent on cornering the market through economies of scale. In other words, using their massive financial weight to keep others out.
I know BA are home grown but if this is the case, it has to stop. The idea of open sky's was to get rid of the monopolies and encourage new airlines to enter the sector. Initially this happened. Most notably, you will remember Zoom or Globespan trying to get a foothold within the north west but failing. Like Laker, this could be history repeating itself. Most of us older guys will remember BA's dirty tricks campaign against Sir Freddy way back in the 70's and early 80's.
Well whats wrong with that - thats competition you may say - or is it? Most would say yes but is it fair competition. I say not. OK the fares are cheaper - in the short term. They will rise as the company's concerned seek more profit and a lack competition (which they created) within the market place would mean customers would have to pay what they asked. It's not just the airlines that would suffer. Airports, such as Manchester and Liverpool were their competitors would fly from, would not be able to offer transatlantic flights or they would be restricted. BA and their alliance would see to that. Any new airline would not just be competing against BA but seven giants as one.
If this is happening, lets hope for the sake of our local airports and airlines wishing to get a foothold in this market, that the powers that be put a stop to this before it's too late.
Here's a link to a BBC report on the issue.
news.bbc.co.uk/1/hi/business/8008051.stm
Steve
I know BA are home grown but if this is the case, it has to stop. The idea of open sky's was to get rid of the monopolies and encourage new airlines to enter the sector. Initially this happened. Most notably, you will remember Zoom or Globespan trying to get a foothold within the north west but failing. Like Laker, this could be history repeating itself. Most of us older guys will remember BA's dirty tricks campaign against Sir Freddy way back in the 70's and early 80's.
Well whats wrong with that - thats competition you may say - or is it? Most would say yes but is it fair competition. I say not. OK the fares are cheaper - in the short term. They will rise as the company's concerned seek more profit and a lack competition (which they created) within the market place would mean customers would have to pay what they asked. It's not just the airlines that would suffer. Airports, such as Manchester and Liverpool were their competitors would fly from, would not be able to offer transatlantic flights or they would be restricted. BA and their alliance would see to that. Any new airline would not just be competing against BA but seven giants as one.
If this is happening, lets hope for the sake of our local airports and airlines wishing to get a foothold in this market, that the powers that be put a stop to this before it's too late.
Here's a link to a BBC report on the issue.
news.bbc.co.uk/1/hi/business/8008051.stm
Steve
