The announced Chapter 11 move by American Airlines today got me thinking.

Is the OneWorld alliance cursed?

So far we have seen JAL, AA, Mexicana, Malev, & Canadian Airlines all go bust permanently or Chapter 11 style. Swiss and Kingfisher have gone/going bust having announced planned membership of OneWorld.

BA & Qantas have shocking empoyee relations and Aer Lingus has teetered on the brink, hence RyanAir sniffing around.

Is there a curse or is this just typical of airlines in general, underlining the fact that they make lousy investments?

The OneWorld Alliance is a major reson folks still fly BA and Qantas etc. Mugs each and every one!

Yes,I prefer Star,but with the forthcoming demise of British Midland ,BA may be the only option

The airline-business has always been a tough one to be in.

The alliances are a worthy attempt to add value and fight-back, but the impact of Low-Cost-Carriers & competition on price/quality from the Gulf-based newbies, will continue to put pressure on the sort of full-price full-service airline that signs-up to OneWorld or Star-Alliance, and also on many of the newer low-cost airlines themselves.

All to the customers' benefit !

It isn't the alliance it's the industry. I find it interesting Emirates/Eithad/Qatar refuse to join an alliance maybe that is the sign of the future.

If you want to own a small airline---buy a large one and wait.........

AMR waited too long to seek bankruptcy protection and re-organize, and they're stuck with a prehistoric (fuel inefficient) fleet.

CO was in Ch. 11 three times (I think), UA two times (I think) and DL once. It's the best legal way to reduce costs (hose over employees/retirees basically).

In theory nothing should change re: OW except perhaps a devaluation in your miles.

It isn't the alliance it's the industry. I find it interesting Emirates/Eithad/Qatar refuse to join an alliance maybe that is the sign of the future.

If you want to own a small airline---buy a large one and wait.........

Etihad have code share alliance with alot of airlines............http://www.etihadairways.com/sites/etihad/uk/en/planatrip/Pages/partnerairlines.aspx

Star world has been better than one world for a long time

Looks like the curse of OneWorld strikes again as Malev, having skirted near-death experiences for a while finally brings down the shutters, joining Canadian & Mexicana as terminal members of OneLife.

http://www.bbc.co.uk/news/business-16866872

Zombie members include JAL, AA (though the ever generous Chapter 11 will stave off the inevitable creative destruction) and the not even fully fledged member Kingfisher.

Hope someone has tipped off Air Berlin & Malaysian, who are due to join the club in the next 18 months. Can't see Tony Fernandes being a big fan.

Ironically core members BA, Iberia, Finnair, Cathay, Jordanian & Qantas rumble on, but LAN (now S.America's biggest airline) may flee the ship now it has finalised its takeover of Brazil's TAM.

Many alliance members have declared Ch. 11 or, worse Ch. 7.

In *A we saw many members in bankruptcy, or outright el foldo in the middle of the night. I think UA was in Ch. 11 twice, CO (another alliance) 3 times.

The biggest problem occurs when you're holding an award ticket from a partner, when the operating airline goes belly-up, a la Ansett.

Alliances used to be a bit more important to FFers but now you really need to watch out for yourself, and not put too many eggs into one basket. FF miles only lose value over time; that is to say redemption rates NEVER decrease.

Alliances aren't bad per se, just some members, who happen to be legacy (read: huge overhead in employees, or an aging fleet) carriers.

I confess I haven't followed the AMR situation but I do not believe they will cease operations, maybe they will merge with US? I would continue to hold/accumulate AA miles. In fact they've had some 2x status miles promos in January, and others for specialized city-pairs, which makes them attractive for aggressive status seekers.

Edited February 3, 201214 yr by lomatopo

and another ailing Airline is approaching oneworld already....... the notorious AIR BERLIN...

ENJOY!

.

Edited February 5, 201214 yr by siam2007