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Enilria - Lufthansa Picks Up Another Euro Airline
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It looks like Air France-KLM will lose to Lufthansa in the battle for Trans Air Portugal AKA TAP. Lufthansa bid for 44% of the airline, and according to reporting, they will win because Air France-KLM Group is financially weaker.
Let's frame that up, shall we?The deciding factor is that the winner should be the airline that is already bigger and more powerful in Europe? In this steady march toward three airlines, why exactly should a government give credit to existing market dominance as a reason to APPROVE a merger? Shouldn't it be the opposite? Isn't the government also in charge of some sort of competition monitoring? I guess not. Also, is this likely to turn out well for TAP? How much has ITA (German Alitalia) added since Lufthansa acquired it? ANSWER: It has shrunk flights 11%.
The real case against Air France/KLMSince the Portuguese government seems to care little about competition, I'll say there is a case for Lufthansa. In terms of intra-Europe it's bad, but for us selfish Americans it's probably good. Frankfurt (FRA) serves Western Europe pretty poorly from the Americas and Air France/KLM have access to a number of Western hubs as does IAG. Lufthansa only really has Brussels (BRU) and it isn't doing too much in the Americas. Lisbon (LIS) in the hands of Lufthansa probably makes them more viable from the U.S. to Western Europe so that's good. Not sure much else is, but Air France/KLM is not significantly less of a competitive worry, I just don't like the powerful get more powerful dynamic going on here, and out in the open.
Note, some of these may not be real, my A.I. thinks it's real funny, yet Spock never figured out humor...
It looks like Air France-KLM will lose to Lufthansa in the battle for Trans Air Portugal AKA TAP. Lufthansa bid for 44% of the airline, and according to reporting, they will win because Air France-KLM Group is financially weaker.
Let's frame that up, shall we?The deciding factor is that the winner should be the airline that is already bigger and more powerful in Europe? In this steady march toward three airlines, why exactly should a government give credit to existing market dominance as a reason to APPROVE a merger? Shouldn't it be the opposite? Isn't the government also in charge of some sort of competition monitoring? I guess not. Also, is this likely to turn out well for TAP? How much has ITA (German Alitalia) added since Lufthansa acquired it? ANSWER: It has shrunk flights 11%.
The real case against Air France/KLMSince the Portuguese government seems to care little about competition, I'll say there is a case for Lufthansa. In terms of intra-Europe it's bad, but for us selfish Americans it's probably good. Frankfurt (FRA) serves Western Europe pretty poorly from the Americas and Air France/KLM have access to a number of Western hubs as does IAG. Lufthansa only really has Brussels (BRU) and it isn't doing too much in the Americas. Lisbon (LIS) in the hands of Lufthansa probably makes them more viable from the U.S. to Western Europe so that's good. Not sure much else is, but Air France/KLM is not significantly less of a competitive worry, I just don't like the powerful get more powerful dynamic going on here, and out in the open.
Note, some of these may not be real, my A.I. thinks it's real funny, yet Spock never figured out humor...
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