bmibunny
June 15, 2002, 07:30 AM
SHANGHAI: Star Alliance - the world's biggest airline network - has given lift-off to the idea of having a Chinese airline join the aviation alliance.
The interest was shown on Saturday at a biannual chief executive officer (CEO) conference in Shanghai.
"China is a hot spot, and we know it is a very important market, definitely one of the major markets for our industry in the future," Juergen Weber, Lufthansa CEO, told the conference participants.
To date, China's three main airlines - flag carrier Air China, China Eastern and China Southern - have shied away from global alliances, although China Eastern co-operates with Cathay Pacific and unlisted Air China has a limited code-sharing agreement with Lufthansa.
"We will develop co-operation, hoping that one day we will have Air China in Star Alliance," Weber said but he admitted they had also held talks with several other Chinese airlines.
Although Lufthansa and United have repeatedly said they want Air China in the alliance, officials from China's flag carrier said they have not yet decided whether to join Star, another alliance, or remain as they are.
A source with Air China, who asked to remain anonymous, said the decision depends on what benefits such a deal will bring to Air China.
"Many Asian Star Alliance members have convenient transfer arrangements, and passengers can be easily transferred to flights to other cities or countries from their airports, but Air China is weak in this aspect," he said.
Asian Star now has Singapore Airlines, Thai Airways International, All-Nippon Airlines and the would-be member Asiana Airlines from South Korea.
If China joins a smaller alliance, which has few partners in Asia, Air China could flourish in the market, "developing into a real Asian airlines in the future," the source said.
But the official also admitted that a so-called seamless air service is very attractive to passengers throughout the world. The Star Alliance's network could take passengers to nearly every major city in the world conveniently. "So it might take a while for Air China to make a decision."
Star Alliance, established in May 1997, was the first global airline alliance. The member airlines are Air Canada, Air New Zealand, All Nippon Airways, Austrian Airlines, British Midland, Lauda Air, Lufthansa German Airlines, Mexicana Airlines, SAS Scandinavian Airlines, Singapore Airlines, Thai Airways International, Tyrolean Airways, United Airlines and VARIG Brazilian Airlines. Its network serves 729 airports in 124 countries.
China's aviation watchdog, the General Administration of Civil Aviation of China (CAAC), principally agreed domestic airlines can join any air alliance in the world, with the precondition they have to wait until the industry regrouping is completed.
CAAC had planned to merge nine State-owned domestic airlines into three groups based on Air China, China Eastern Airlines and China Southern Airlines.
Former CAAC minister Liu Jianfeng, who retired last month, said earlier this year the three new groups could make their own decisions for joining international air alliance when the regrouping was finished.
"Teamwork is a trend in this industry," he said, adding he believed that joining such an alliance could help domestic airlines upgrade their management and freshen up their business ideas.
But he also warned airlines should be "very cautious" before any decisions were made.
Cheong Choong Kong, CEO of Singapore Airlines, said joining Star Alliance would help sharpen airlines' competitive edge. "Joining Star Alliance means your passengers could travel to 729 airports in 124 countries with just one single ticket - it's a great advantage that no other air alliance in the world could compete against," Cheong said.
Cheong visited Tibet before coming to Shanghai for the conference, and he was quite satisfied with air services from China's airlines.
"I believe China's airlines are of a high standard, both technically and in service provision, and if they join the alliance, they would enjoy strong business opportunities," Cheong said.
South Korea's Asiana Airlines, Polish airline PLL LOT and Spain's Spanair were expected to become members of Star Alliance in the next six to 12 months, which gives it three more European hubs -Warsaw, Madrid and Barcelona - and Seoul's Incheon airport in Asia.
The interest was shown on Saturday at a biannual chief executive officer (CEO) conference in Shanghai.
"China is a hot spot, and we know it is a very important market, definitely one of the major markets for our industry in the future," Juergen Weber, Lufthansa CEO, told the conference participants.
To date, China's three main airlines - flag carrier Air China, China Eastern and China Southern - have shied away from global alliances, although China Eastern co-operates with Cathay Pacific and unlisted Air China has a limited code-sharing agreement with Lufthansa.
"We will develop co-operation, hoping that one day we will have Air China in Star Alliance," Weber said but he admitted they had also held talks with several other Chinese airlines.
Although Lufthansa and United have repeatedly said they want Air China in the alliance, officials from China's flag carrier said they have not yet decided whether to join Star, another alliance, or remain as they are.
A source with Air China, who asked to remain anonymous, said the decision depends on what benefits such a deal will bring to Air China.
"Many Asian Star Alliance members have convenient transfer arrangements, and passengers can be easily transferred to flights to other cities or countries from their airports, but Air China is weak in this aspect," he said.
Asian Star now has Singapore Airlines, Thai Airways International, All-Nippon Airlines and the would-be member Asiana Airlines from South Korea.
If China joins a smaller alliance, which has few partners in Asia, Air China could flourish in the market, "developing into a real Asian airlines in the future," the source said.
But the official also admitted that a so-called seamless air service is very attractive to passengers throughout the world. The Star Alliance's network could take passengers to nearly every major city in the world conveniently. "So it might take a while for Air China to make a decision."
Star Alliance, established in May 1997, was the first global airline alliance. The member airlines are Air Canada, Air New Zealand, All Nippon Airways, Austrian Airlines, British Midland, Lauda Air, Lufthansa German Airlines, Mexicana Airlines, SAS Scandinavian Airlines, Singapore Airlines, Thai Airways International, Tyrolean Airways, United Airlines and VARIG Brazilian Airlines. Its network serves 729 airports in 124 countries.
China's aviation watchdog, the General Administration of Civil Aviation of China (CAAC), principally agreed domestic airlines can join any air alliance in the world, with the precondition they have to wait until the industry regrouping is completed.
CAAC had planned to merge nine State-owned domestic airlines into three groups based on Air China, China Eastern Airlines and China Southern Airlines.
Former CAAC minister Liu Jianfeng, who retired last month, said earlier this year the three new groups could make their own decisions for joining international air alliance when the regrouping was finished.
"Teamwork is a trend in this industry," he said, adding he believed that joining such an alliance could help domestic airlines upgrade their management and freshen up their business ideas.
But he also warned airlines should be "very cautious" before any decisions were made.
Cheong Choong Kong, CEO of Singapore Airlines, said joining Star Alliance would help sharpen airlines' competitive edge. "Joining Star Alliance means your passengers could travel to 729 airports in 124 countries with just one single ticket - it's a great advantage that no other air alliance in the world could compete against," Cheong said.
Cheong visited Tibet before coming to Shanghai for the conference, and he was quite satisfied with air services from China's airlines.
"I believe China's airlines are of a high standard, both technically and in service provision, and if they join the alliance, they would enjoy strong business opportunities," Cheong said.
South Korea's Asiana Airlines, Polish airline PLL LOT and Spain's Spanair were expected to become members of Star Alliance in the next six to 12 months, which gives it three more European hubs -Warsaw, Madrid and Barcelona - and Seoul's Incheon airport in Asia.