The controversial decision by Iberia and Air France to sign a cross-alliance codeshare agreement may be a sign of tensions in the oneworld alliance. The source of tension appears to be the British Airways low-fare operation Go, which serves a number of Spanish destinations.
The agreement, covering some services to destinations in Latin America and the Far East, has surprised some industry watchers.
Air France president Jean Cyril Spinetta says the agreement will have a limited application and in no way implies that Iberia will leave the oneworld alliance or that Air France is having second thoughts about the recently constituted SkyTeam grouping.
Benefits to both sides appear dubious, however. Air France is strong in Latin America, as well as being able to offer passengers from Europe further connections into the region via its association with Aeromexico and Delta. Iberia, weak in the Far East market, could easily channel passengers through London Heathrow, where BA has an extensive network serving markets in the East.
Informed sources say that behind Iberia's decision is an attempt to apply direct pressure on BA to cut back on the activities of its low-cost subsidiary Go in the Spanish market. Go flies to Madrid, Barcelona, Málaga, Alicante, Ibiza, Palma and Bilbao at rock-bottom prices.
This summer, for example, Go has offered return flights to Madrid for £103 ($155) from London Stansted, while a heavily discounted ticket on Iberia from Heathrow cost £218.
Source: Airline Business
