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  • JV Structures in The Airline Industry by DR Weber - PDF - 150318

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    Dr. Jürgen Weber gave a presentation on joint venture structures in the airline industry to the Box Club in Geneva on March 18, 2015. He discussed three models of cooperation between airlines: interlining, the STAR model, and commercial joint ventures. Weber emphasized that for joint ventures to be successful, the partner airlines should act like a single company and focus on expanding route networks, cargo transportation, and revenue sharing while balancing regulatory approval and customer benefits. Overall, Weber argued that with cooperation and regulatory buy-in, airline joint ventures can have positive impacts for passengers.

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    Dr. Jürgen Weber gave a presentation on joint venture structures in the airline industry to the Box Club in Geneva on March 18, 2015. He discussed three models of cooperation between airlines: interlining, the STAR model, and commercial joint ventures. Weber emphasized that for joint ventures to be successful, the partner airlines should act like a single company and focus on expanding route networks, cargo transportation, and revenue sharing while balancing regulatory approval and customer benefits. Overall, Weber argued that with cooperation and regulatory buy-in, airline joint ventures can have positive impacts for passengers.

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    © All Rights Reserved
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    40 views15 pages

    JV Structures in The Airline Industry by DR Weber - PDF - 150318

    Uploaded by

    eyao
    Dr. Jürgen Weber gave a presentation on joint venture structures in the airline industry to the Box Club in Geneva on March 18, 2015. He discussed three models of cooperation between airlines: interlining, the STAR model, and commercial joint ventures. Weber emphasized that for joint ventures to be successful, the partner airlines should act like a single company and focus on expanding route networks, cargo transportation, and revenue sharing while balancing regulatory approval and customer benefits. Overall, Weber argued that with cooperation and regulatory buy-in, airline joint ventures can have positive impacts for passengers.

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    © All Rights Reserved
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    of 15

    Joint venture structures in the airline industry

    Presentation to the Box Club


    by Dr. Jürgen Weber,
    Honorary Chairman, Deutsche Lufthansa AG
    Geneva, 18March 2015

    | JVs in the airline industry | Page 1


    Airlines too are bound by strict competition rules

    | JVs in the airline industry | Page 2


    Three models of cooperation between airlines:
    Interlining, STAR-Model and commercial JV

    | JVs in the airline industry | Page 3


    Guiding principle: Joint Ventures should act like
    a single company

    | JVs in the airline industry | Page 4


    Airline Joint Ventures span the Globe

    | JVs in the airline industry | Page 5


    JV Partnerships in the Airline Industry
    will grow in numbers
    A survey among 173 airline executives:

    | JVs in the airline industry | Page 6


    Antitrust Immunity (ATI) is a MUST for Joint
    Ventures
    • Antitrust immunity (ATI) means an exemption from competition policies and law

    • ATI for airline Joint Ventures includes:


    • Freedom to coordinate price & scheduling
    • Right to operate as ‘one carrier’
    • Right to share revenues/ profits

    • All documents including applications and decisions are made public

    • Each state is granting antitrust immunity in accordance with its own competition
    laws and no international standards or agreements currently exist

    • Nevertheless, states have significant similarities in the implementation of


    granting antitrust immunity

    • Open Skies agreements in place support ATI

    | JVs in the airline industry | Page 7


    Balancing the pros and cons of any JV

    | JVs in the airline industry | Page 8


    Joint Ventures have a positive impact on
    passengers in all aspects of travel

    | JVs in the airline industry | Page 9


    Lufthansa and ANA: Cargo is hardly different

    | JVs in the airline industry | Page 10


    JVs help expanding route networks

    | JVs in the airline industry | Page 11


    Revenue sharing is the dominant share-
    mechanism in airline JVs

    | JVs in the airline industry | Page 12


    A rough Joint Venture road

    | JVs in the airline industry | Page 13


    Summary

    1. Get buy-in from the regulators


    2. Act in the public good
    3. Put the customer first
    4. Involve yourself!
    5. TRUST – TRUST -TRUST

    | JVs in the airline industry | Page 14


    | JVs in the airline industry | Page 15

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