United Airlines senior VP financial planning and analysis John Gebo, speaking at the CAPA Australia Pacific Aviation Summit, said (08-Aug-2013) major carriers in the US “can easily co-exist” with ULCCs, adding the market is “at much less risk” of a new entrant disrupting the market, citing Southwest Airlines as a previous example. Mr Gebo said larger US carriers now see “70%-90% LCC penetration” across their domestic networks, and that the industry is now able to compete with LCCs “in a way that it wasn’t ten to fifteen years ago.”
United Airlines: Major US carriers 'can easily co-exist' with ULCCs
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US airlines and the Cuba route awards Part 1: The US DoT slices up many pieces of the Havana pie
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In theory, the DoT’s proposed route structure ensures that customers travelling to Havana have access to a wider range of fare prices and product offerings. In many respects the agency had little choice but to accommodate as many airlines as possible for service to Havana – in order to ensure that consumers had an array of service providers as scheduled air service resumes between the US and Cuba.
There may be some quibbles regarding the tentative route awards to Havana, but the route composition proposed by the DoT is not likely to change drastically. The agency’s route dispersal reflects certain expectations that the agency would institute a certain level of competitive diversity on new services to Havana.
(This is Part 1 in a series examining US-Cuba route awards. Part 2 will examine markets other than Havana)
"Too little competition in the American (airline) market". EU head: US consolidation goes too far
At the ACI 26th General Assembly in Athens on 21-Jun-2016 the European Commission's DG Competition Henrik Mørch said that the EC has generally approved JVs but is closely watching consolidation trends. As reported in a CAPA news brief, Mr Mørch said that the EC is interested in how much consolidation can be justified with efficiency gains for the consumer.
He added that, while the European aviation market is more fragmented than the American market, taking the level of consolidation that exists in the US and applying it to Europe is "not necessarily something we would advocate for...there's too little competition in the American market in our view".
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