4Hoteliers
SEARCH
SHARE THIS PAGE
NEWSLETTERS
CONTACT US
SUBMIT CONTENT
ADVERTISING
The Breakup of the Holistic Airline Model.
By Timothy O Neil-Dunne ~ T2Impact.com
Monday, 9th February 2009
 
For many years people have balked at the prospect of fragmentation - that fear has kept the "Air Transportation System" - well - as a integral holistic service, at least in some people's minds.

Much of this stemmed from the good old days when domestic US airlines didn't fight with each other and took each others' tickets in a very gentlemanly fashion.

For International travel the only players on effective international routes all swapped tickets because - well International bilateral agreements superseded all other rules.

Fast forward about 30 years and the impact of de-regulation across the spectrum, the growth of ad hoc and even permenant alliances and the pervasiveness of web based technologies and those nice old holistic legislated or commercially constrained systems look decidedly long in the tooth. There really is no such thing as airline neutrality and a holistic system where we live in Utopian cooperation. It is everyone for himself.

Despite this reality some components of these "systems" are still living in the world of yesterday. On the other hand some progressive airlines have decided to blow right through those arcane models and form strong commercial bonds that go outside that nice old holistic model.

For example LH buying into JetBlue and then integrating some of their operations. The Volaris/Southwest/WestJet relationship. The new United/Aer Lingus partnership and the announcement today of WestJet and AF/KL tie up. I can cite many more instances but you get my drift here.

It is interesting that on the very day that Westjet/AF+KL announcement is made that you have a senior GDS official getting up and saying that (and I am synthesizng out of context aggressively here to make my point) "...fragmentation ......fundamentally different from our (GDS's) philosophy on content..."

My point is that there is an inevitability now that fragmentation (as The Professor has oft opined) is not a new fleeting thing - it is here to stay and anyone who gets in the way of the unbundled and the fragmentation processes will in my humble opinion become road kill.

I liken this to the break up of Ma Bell (aka the old AT&T). People bemoan the loss of guaranteed dial tone. However they love the development of technology and the lowering of price and the plethora of options. Well so too the airline system model and the IT systems that constrained it that way. Before calm was restored in the telephony market there was a lot of disruption. I think there will be that occurring for a while in distribution.

You have been warned... that noise you hear is not just the wind...

Thanks for reading - private comments please to administrator@t2impact.com

T2Impact is a business development, technology and strategic consulting group focused on helping firms to accelerate their growth either in new geographies or with new products and services. Our name derives from the companys focus; accelerating time and getting from idea to impact quickly for its clients.

We provide a full line of strategic planning services, including marketing plan development, joint venture opportunity evaluation, market and competitive research, process re-engineering, business plan validation and execution. 


www.t2impact.blogspot.com
Brand Awareness - Online Marketing at 4Hoteliers.com ...[Click for More]
 Latest News  (Click title to read article)




 Latest Articles  (Click title to read)




 Most Read Articles  (Click title to read)




~ Important Notice ~
Articles appearing on 4Hoteliers contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.
© Copyright 4Hoteliers 2001-2025 ~ unless stated otherwise, all rights reserved.
You can read more about 4Hoteliers and our company here
Use of this web site is subject to our
terms & conditions of service and privacy policy