So, I think we’re all aware of Delta’s CEO – Richard Anderson – performance/whine on CNN’s Quest Means Business. If you you’re not, head to CNN’s site to see this car crash of an interview.
And if not, watch it first. Seriously.
Delta’s CEO is referring to Emirates, Qatar Airways and Etihad – all of which
Where are US Carriers (as well as other carriers) going wrong? There are many many things.
- The products don’t compete. And if anyone thinks the passenger experience is exactly the same needs to fly these airlines and work out who’s invested in their products and who’s cut their product
- Their networks are in the wrong place. This is something more European airlines are finding than not – as airports are restricted by take off and landing times, hubs are moving eastwards to 24 hour hubs
- Customers are choosing them over other carriers. Be it on budget, timings or dread the thought… a direct service!
- Even if it’s an indirect, the hub is designed logically enough to flow through.
Let’s look at the other arguments:
- Government Backing. At what point does Delta/Airlines For America say “enough” on ownership? Is it 100%? 75%? 50% 25%? Another point maybe to think about is that other airlines are operated by states (eg, Royal Brunei, Thai Airways, Air China, China Airlines, Aeroflot, Air India, Singapore Airlines… the list goes on. Have a look at http://en.wikipedia.org/wiki/Category:Government-owned_airlines for a list). Are Delta proposing banning them from the open skies agreement?
- US Airlines have had time to reorganise… in fact most of them have been in or out of Chapter 11 for during the past decade or so. Rather than looking at the product, they’ve chosen to cut, cut and cut again.
- That 9/11 argument. Rather sickening. About ~5:20 into the interview. Quote:
“It’s a great irony to have the UAE from the Arabian Peninsula talk about that, given the fact that our industry was really shocked by the terrorism of 9/11, which came from terrorists from the Arabian Peninsula.”
I’m going to be honest. That’s left me rather speechless. If anything, it’s rather crass (at best) and badly researched. Fifteen of the people involved came from Saudi Arabia – with the state funded airline Saudia (a SkyTeam member) not competing in the same league. Additionally Etihad wasn’t in existence before 2003, so that’s a bit moot.
There is one hell of an argument for the US Carriers to buck up their ideas and compete and quit the whines. There is another that says the Gulf airlines need to come clean on their books.
Some think the path is in the middle somewhere.
Something does need to happen – but coming out with junk like this and airing on CNN isn’t the way ahead.
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the direction Anderson has taken Delta in the US merged mainline industry has been impressive, as the combined Delta-NWA has maneuvered best his airlines (v. UAL, AA/US, even SW). i’m a bit surprised he’s sinking into this topic, fear of competition. think we know that in the big picture DL doesn’t not compete directly with the Arab big 3. DL, on the brink of phasing out he 747 as their NRT hub becomes obsolete, their innovation of comfort+, F upgrades for $$, high earnings, leaves them dare i say in an impressive position but not the world league of the arab 3.
I never expected the third Gulf War to be between airlines.