Tuesday, November 22, 2005

Carrier Seeks Deal With Vietnam Airlines: Financial News - Yahoo! Finance

Carrier Seeks Deal With Vietnam Airlines: Financial News - Yahoo! Finance

While UAL sits in bankruptcy, AMR continues to make deals. The latest plan is for Vietnam Airlines and AMR to share code. This means each will be able to sell the others ticket. For example, AMR would be able to sell tickets from the United States to Japan and then to Hanoi. The second part of the trip would be on a Vietnam Airline plane.

Code sharing deals are important for a couple of reasons. One being the increased traffic it brings and the other being the reduction in costs. If AMR is already selling the one ticket, it pays no fees to travel agents to sell the second ticket.

The world has started a "business expansion"; we are no longer in an economic recovery. New plants are being built, new deals are getting done, new contracts are being signed and joint venture participants and trading partners are getting to know one another. International travel is growing like US travel grew decades ago.

AMR and CAL are each participants in international code sharing consortums. Any business that needs to send employees to spots around the globe can do one spot shopping with these major carriers. LUV does not fly there. The business is competitive but not cut-throat. Profits are going to grow!

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