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Answers (2)
Why Would Airlines Start Subsidiaries?
Why Would Airlines Start Subsidiaries?
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AnonymousWhy Would Airlines Start Subsidiaries?
Take for example Shanghai Airlines and China Eastern Airlines. Why did China Eastern Airlines open Shanghai Airlines?
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David W
I think a lot of the times its for financial reasons, whether its to lower costs or having bought a competing airline and then keeping operations somewhat separate. Some people favor one brand over another, even if they have the same parent company. Many people dont like the AS and VX merger since there are people who are very loyal to VX. Cathay bought Dragonair a long time ago but kept it separate instead of integrating since mainland China much prefers Dragonair to Cathay. The 3 major US airlines all use smaller airlines for many express or short connection flights. On the books, those airlines are not officially a part of the main US airlines and therefore, performance is separated.
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