Aviation alliances on a roll

Aviation alliances get stronger as Air China, Shanghai Airlines, Turkish Airlines, Japan Airlines, and Royal Jordanian, join the club.

30 May, 2007:

Star Alliance, SkyTeam Airline Alliance and the Oneworld Alliance, the three big multilateral aviation alliances are scouting for more members to their fold. The alliances currently account for over 60 percent of the global airline industry, says the International Air Transport Association, with Star Alliance holding 25.1 percent, Skyteam 20.8 percent and the Oneworld Alliance 14.9 percent.

With aviation alliances having turned aggressive after the global airline industry fully overcame obstacles like 9/11 and the 2003 SARS scare, the consolidation phase started to see a turnaround.

Star Alliance, which recently celebrated the 10th anniversary of its establishment has said Air China and Shanghai Airlines will join the world’s largest airline network this year and Turkish Airlines next year. By inviting the two Chinese carriers, it plans to step up efforts to meet surging demand for Chinese routes ahead of the 2008 Beijing Olympic Games and 2010 Shanghai Expo, a report said.

Meanwhile, the Oneworld Alliance has accepted Japan Airlines, Malév of Hungary, and Royal Jordanian as new members in April to strengthen European and Asian services. It has now grown into a network of 10 airlines, inviting new members for the first time in six years.

Not to be left behind, SkyTeam became the first aviation alliance to accept a Russian airline, with Aeroflot joining SkyTeam last year. China Southern Airlines is all set to join too.

Significantly, SkyTeam focuses on Asian services while further strengthening Atlantic routes. The report added that it is also eyeing more market share in Africa, Latin America, Eastern Europe and the Middle East by inviting airliners from those regions as associate members. Kenya Airways, Copa Airlines of Panama, Tarom of Rumania and Middle East Airlines of Kuwait are associate members of SkyTeam.

For the alliances, expanding routes is not the only goal. They pay attention to strengthening IT-related services like e-tickets and protecting the environment. The alliances are trying to find ways to develop bio energy and reduce emissions and noise in cooperation with plane manufacturers Boeing and Airbus. They also aim to offer better premium services to customers, like exclusive terminals for more convenient transfer at major airports, added the report.