When airlines such as Delta and Etihad opt to make investments in partner airlines around the globe instead of making acquisitions, which can trigger regulatory hassles, the investor carriers are going to be subject to economic turmoil in partners' domestic markets. That just goes with the territory.
Who needs alliances when you can be a bully in the boardroom?
Less flights to the U.S. from Brazil means less foreign luxury shopping and spending that U.S. retail outlets in major markets have come to depend on.
It's like the 2000s in North America all over again.
Taking equity stakes in troubled foreign carriers — maybe Delta does have a few things in common with the Gulf carriers.
Travel demand is still on the rise from the lulls of the global recession and primarily domestic airfares are slower to pick up than international flights.
Avianca Brasil won't make a profit this year but it is maintaining its share of corporate travel while Gol and Tam are struggling to attract business travelers and are resorting to discounting fares to fill seats.
Is this the equivalent of the early 1980s in the U.S.? Or something unique altogether?