VIRGIN Atlantic general manager global distribution Charlie McKee has defended the airline’s decision not to join a global alliance.
McKee told a Chartered Institute of Marketing Travel Industry Group meeting last week that alliances such as the Oneworld partnership, Star Alliance and Qualiflyer are bad for the consumer. “At this point in time we are a non-alliance carrier.We believe that alliances are in many respects wolves dressed in sheep’s clothing,” he said.
“We have grave concerns that both the consumer and also ourselves are not necessarily going to be best served by alliances.”
Virgin does, however, have codeshare agreements with Continental Airlines on transatlantic routes and with Malaysia Airlines to Kuala Lumpur. However, McKee said this agreement is not the same as an alliance deal. “It is a distribution deal where the airline has bought a block of seats from us. We are fierce competitors in terms of pricing and we don’t have joint marketing agreements. Our partnership has facilitated the entry of additional competitors at Heathrow so in that way there has been a benefit to the consumer.”
McKee said that Virgin would not join an alliance as long as it was supported by the travel trade.
“We can afford to be a single alliance as long as the travel trade supports us. We are openly dependent on the support of the trade,” he said.
Meanwhile, Maersk DFDS Travel managing director Mike Carrivick said airlines in alliances would only offer short-term benefits.
He said:”Alliances have been devised in the interest of one party and one party only – the carriers.
“No matter what the airlines tell you, these alliances are not developed in the interests of the consumer.
“Sure, there will be short-term benefits, but my prediction is that they won’t last.
“In the longer term, these benefits will definitelydisappear.”