November 2 - Bad Motives Beget Bad Strategy Which Begets Bad Results



Bad Motives Beget Bad Strategy Which Begets Bad Results


Consumers, workers lose when greed, commercial protectionism combine


RADNOR, PA – Business Travel Coalition (BTC) and today responded to Etihad Airways’ announcement that it is ending service to Dallas/Fort Worth International Airport.


Etihad Airways announced today that it will cease flying to Dallas/Fort Worth International Airport (DFW) from Abu Dhabi in March 2018 after American Airlines announced on June 29, 2017 that for political purposes it would end a codeshare agreement between the two carriers which will result in thousands of lost US jobs. The codeshare has immensely benefited airlines, workers, consumers and the regional economy.  

“After a 3-year, multimillion-dollar political campaign falsely premised on lost jobs due to Gulf carrier competition, for the first time there are real American jobs that can be verifiably counted as decimated,” stated BTC founder Kevin Mitchell. “This ill-conceived plan to demand that the Obama and Trump Administrations protect American Airlines, Delta Air Lines and United Airlines’ (Big Three) workers from Gulf carrier competition is a complete hoax. There has been zero evidence of a single Big Three job lost because of Gulf Carrier competition. However, now as a consequence of bad corporate motives and strategy at American Airlines, with regard to Gulf carrier competition, there will be thousands lost,” added Mitchell.

Having secured domestic US airline industry consolidation, and antitrust immunity for joint ventures with foreign airline partners, the Big Three sadly were motivated by corporate greed to protect their new dominant market positions by frustrating foreign carrier new entry in the US with hoped for assistance from the US Government.

The Abu Dhabi-DFW flight is one of the most successful Etihad routes with high passenger load factors and strong revenue yields. Each year Etihad transfers over 300,000 passengers – who will now be greatly inconvenienced - from disparate foreign airports to American Airlines at DFW calling into question how much revenue the airline’s shareholders will have sacrificed for this Board-sanctioned anti-competitive agenda.

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