Alliances Won't Hurt Market

<FONT SIZE="+3"><B> Alliances Won't Hurt Market</B>


<B>A</B>s a company that believes in global market competition, and that two years ago globalized its operations through the creation of Carlson Wagonlit Travel, we lend our vigorous support to the idea that alliances providing improved service to consumers and more efficiencies to the marketplace are greatly desirable.

They also are unavoidable if our world's transportation network is to be taken to the next level of its evolution. In the case of the British Airways and American Airlines alliance, there is no doubt our industry and the public will benefit from greater coordination of schedules between 36,000 potential city pairs on five continents, and 482 flights per week between 21 U.S. and 12 European gateways.

Global partnerships mean establishing easier access for passengers to tightly controlled airports in a speedy and amicable manner. They also mean broader and more efficient cargo services worldwide, facilitating global commerce and international trade. So as the saying goes, "What's not to like?"

As is the case whenever two major corporate entities attempt to cooperate, the specter of diminished competition will always be raised and should be carefully considered. In the case of airline partnerships, will competition diminish? In a few markets, yes, but overall the answer is no. The free enterprise marketplace will remain competitive, and the competition will come from much stronger players than exist today, such as an alliance between United and Lufthansa.

Speaking as an organization charged with protecting the financial interests of our clients, Carlson Wagonlit Travel is satisfied that the necessary governmental oversights already are in place to protect the public's interests as new alliances of this nature test their wings. In addition, we have great faith in the marketplace and in our own negotiation abilities to keep all players competitive.

Above all, the public's main interests are a healthy, safe, stable and growing global transportation network.

To those who are working toward this goal through innovative alliances, we can only wish "bon voyage."

Travis Tanner is co-president and CEO of Carlson Wagonlit Travel, Minneapolis.