{"id":69,"date":"2010-02-19T15:31:20","date_gmt":"2010-02-19T13:31:20","guid":{"rendered":"http:\/\/www.aviationadvocacy.aero\/blog\/?p=69"},"modified":"2019-07-23T11:51:43","modified_gmt":"2019-07-23T09:51:43","slug":"ba-aa-and-what-the-animal-kingdom-can-show","status":"publish","type":"post","link":"https:\/\/www.aviationadvocacy.aero\/blog\/?p=69","title":{"rendered":"BA-AA and what the animal kingdom can show"},"content":{"rendered":"The blogosphere and other worthies have gone all hot and heavy about the announcement of the approval by the US DoT of the AA-BA alliances’ application for anti-trust immunity.\r\n\r\nThere are a lot of things that could be said about this decision – and most are being said.\u00a0 But much overlooked is that there is – finally – attention being paid to the entire issue of network dynamics.\u00a0 Since Pontius was a pilot anti-trust applications, indeed general regulatory review, has focused on city pairs.\u00a0 Sure, important in so far as they go – from one city to another, mainly, they entirely miss the point about networks.\r\n\r\nAirlines, at least full service ones, are network businesses.\u00a0 There is a small, but slowly growing study in economics of network economics.\u00a0 When I was at IATA I tried to commission a major study on this point.\u00a0 At Qantas we based an entire ATI application (the first one, notwithstanding what folk in Nth America may say) on it, but it remains less well known than it should.\r\n\r\nFortunately, science has ridden in to the rescue.\u00a0 There is a growing body of study that shows that such things as amoeba work out their survival based on network theories of efficency.\u00a0 Hubs are important.\u00a0 See this article from the Economist for example: http:\/\/www.economist.com\/sciencetechnology\/displaystory.cfm?story_id=15328524\r\n\r\nThere is an analogy to be drawn about forms of life and airline executives, but I don’t do obvious, obviously.\r\n\r\nThe second very important point is that the DoT makes specific reference to the fact that they had worked on this with the European Commission.\u00a0 We are getting regulatory convergence.\u00a0 This has huge implications, particularly if you are a non-alligned carrier.\u00a0 And what it means is clear – speak now, or forever hold your peace…","protected":false},"excerpt":{"rendered":"

The blogosphere and other worthies have gone all hot and heavy about the announcement of the approval by the US DoT of the AA-BA alliances’ application for anti-trust immunity. There are a lot of things that could be said about this decision – and most are being said.\u00a0 But much overlooked is that there is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-69","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/posts\/69","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=69"}],"version-history":[{"count":5,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/posts\/69\/revisions"}],"predecessor-version":[{"id":73,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/posts\/69\/revisions\/73"}],"wp:attachment":[{"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=69"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=69"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=69"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}