daily menu » rate the banner | guess the city | one on oneforums map | privacy policy | DMCA | news magazine | posting guidelines

Go Back   SkyscraperCity > Infrastructure and Mobility Forums > Airports and Aviation

Airports and Aviation » Airports | Photos and Videos



Global Announcement

As a general reminder, please respect others and respect copyrights. Go here to familiarize yourself with our posting policy.


Reply

 
Thread Tools
Old May 24th, 2006, 04:33 AM   #61
equivoque
Et paradoxe... Ça suffit!
 
equivoque's Avatar
 
Join Date: Jul 2005
Location: Warszawa/Berlin
Posts: 736
Likes (Received): 2

Air China Limited to become a Star Alliance Member Carrier



Beijing, China – May 22nd, 2006 -Air China Limited ("Air China") and the Star Alliance, the airline network for Earth™, today signed a Memorandum of Understanding confirming an invitation for Air China to join the alliance.

Commenting on today's event, Jaan Albrecht, Star Alliance CEO said: "With Air China having chosen to join Star Alliance, we have now taken the decisive step in implementing our strategy for the Chinese market. This decision truly lays the foundation for the future pace in Chinese Aviation."

Attending the event was the Chancellor of the Federal Republic of Germany, Dr. Angela Merkel, who is on her first visit to China; German Federal Minister for Transport, Building and Urban Affairs, Wolfgang Tiefensee; Minister Yang Yuanyuan of the General Administration of Civil Aviation of China.

Mr. Li Jiaxiang, Chairman of China National Aviation Holding Company, Mr. Ma Xulun, President of Air China Limited, Mr. Jaan Albrecht, CEO of Star Alliance and several CEOs of the Star Alliance member carriers were also present at the ceremony together with 150 distinguished guests.

Mr. Li Jiaxiang, Chairman of China National Aviation Holding Company and Chairman of Air China Limited, said in his speech: "With economic globalisation and open skies, the competition in the airline industry will become more and more severe. No one airline can create a global network by itself. In order to survive and develop, airlines have to cooperate with other partners in various forms including multilateral alliance cooperation."

"Cooperation between Air China and Star Alliance will be mutually beneficial. Currently, China is one of the fastest growing civil aviation markets with great potential. Through cooperation with Air China, Star Alliance will connect its international route network with China through Air China's extensive domestic network and extend its global route network. The travelling public will have access to more convenient services, savings made and efficiency improved," Mr. Li said.

The Star Alliance network recently also extended an invitation to Shanghai Airlines to join the alliance. This dual-hub approach will allow the alliance to offer a unique network from the two most important airports in China.

Once both Air China and Shanghai Airlines will have become full members of the alliance, the Star Alliance network will grow to 20 members, offering more than 16,500 daily fights to 912 destinations in 160 countries

About Air China

After going public in 2004, Air China has rapidly reformed through changed working and management practices. Profitable in 2004 Air China was also made a profit in 2005 with total turnover of 7.44 billion tonne kilometres [ up 10.2% ] Passenger transportation volume increased to 27.695 million [ up 13 percent ] Profit after tax was 2.406 billion RMB [ up 0.85 percent compared with the same period last year ].

Facing new domestic and international competition, Air China set up four strategic objectives: "to be recognised by premium passengers, achieve best profits, to be a valuable airline of China and an airline with global competitive strength."

Air China has a fleet of 176 aircraft, mainly Boeing and Airbus. It operates up to 70 domestic and 36 international destinations in 22 countries and regions. It flies around 4160 flights per week. Through code shares with 18 domestic and international airlines, Air China operates 1210 code share flights.

Benefits of Joining Star Alliance

Facing more and more severe competition after the open skies policy was introduced, Air China decided to join Star Alliance to further expand its route network and enhance international competitiveness.

Joining Star Alliance will enable Air China to accelerate establishment of its Beijing hub and improve flight connections with Star Alliance partners through the hub. Air China will work with the Star Alliance's strong sales network and its joint purchasing programs. Both will benefit Air China.

Chinese domestic passengers will be able to purchase a ticket flying to any destination operated by any alliance member airline. Members of Star Alliance carrier Frequent Flyer Programs (FFP) will be able to collect and redeem miles, kilometres or points on any member carrier. Star Alliance Gold members received alliance-wide benefits, such as for example dedicated check-in counters and priority wait listing.

Star Alliance customers have access to 660 airport lounges. Check-in, joint ticketing and baggage facilities, collocation and connection teams at key airports all play a role in creating a smoother travel experience. Star Alliance carriers can offer passengers a variety of air passes and special fares including a Round the World Fare, Circle Asia Fare, Circle Pacific Fare and the African, Asian, Brazilian, European, Japan, North American, South Pacific and Thailand Air passes.

Now 52 years old Air China has a strong management. Since going public Air China has undergone internal reform, including changes in its corporate organisation and culture. Taking advantage of the strength of Air China in the domestic market, Star Alliance member airlines will closely connect the alliance's international network with China, one of the biggest potential markets.

About Star Alliance

Star Alliance is a global airline network which was established by five airlines, Air Canada, Lufthansa, Scandinavian Airlines, THAI and United on May 14, 1997.

Since its formation, the original alliance group has grown to include some of the world’s finest airlines. The current 18 members include Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAP Portugal, THAI, United, US Airways and VARIG. Now Air China Limited and Shanghai Airlines have announced their intention to join the Star Alliance Network.

Members of Star Alliance Frequent Flyer Program (FFP) can collect and redeem miles, kilometres or points on any member carrier. Star Alliance Gold members have access to 660 lounges at airports around the world.

Together, 360,000 employees serve more than 425 million passengers a year. With a modern combined fleet of more than 2800 aircraft, Star Alliance offers 15,500 daily flights to 842 airports in 152 countries.

At present, there are nine member airlines operating to 19 cities in China including Beijing, Shanghai and Guangzhou. Star Alliance has been voted "Best Airline Alliance" by Skytrax in 2003 and 2005.

Cooperation between Air China and existing Star Alliance member carriers:

Air China currently has code-share relationships with the following Star Alliance member carriers: ANA, Asiana Airlines, Austrian, Lufthansa, SAS, United and VARIG.

Cooperation between ANA - Air China

ANA began code-sharing with Air China on flights between Japan and China in March 2004. At the same time, the two airlines also instigated mutual recognition of their Frequent Flyer Programmes. This very successful co-operation agreement soon expanded from 102 weekly jointly operated flights to the present 185. Air China's decision to join the Star Alliance family is warmly welcomed by ANA, as it will add a new dimension to an already strong relationship, and further cement the partnership between two Asian neighbours

Cooperation between Austrian Airlines - Air China

Austrian Airlines and Air China started their cooperation in form of a code-share/blocked space agreement in January 1996 on the Vienna - Beijing v.v. route. Upon resumption of the Vienna-Shanghai vv. flights in summer 2004, this route was equally included in the cooperation agreement with Air China, thus enabling connections on to the extensive domestic network of Air China within China on one hand and the extensive network of Austrian Airlines via the Vienna hub to Central, Eastern and Western Europe.

Cooperation between Lufthansa – Air China

Code Share Cooperation:Air China and Lufthansa started code share cooperation on Oct 29, 2000. Considerable advancement has been made in that time.

Sino-German Trunk Route Code Sharing:Currently the total code share capacity of Air China and Lufthansa is 49 flights per week of which 18 flights are operated by Air China and 31 flights by Lufthansa.

Domestic points code sharing: Air China has code shares with Lufthansa on nine points in Germany including Frankfurt, Berlin, Munich, Hamburg, Cologne, Düsseldorf, Hanover, Leipzig, Nuremberg, Stuttgart. Third country code sharing points include Sao Paulo in Brazil, Madrid, Barcelona and Bilbao in Spain.

Lufthansa puts its code on Air China's flights to the following cities in China: Chengdu, Dalian, Guangzhou, Hangzhou, Nanjing, Shenyang, Xiamen and Wenzhou. In April of 2005, Air China started a third country code share with Lufthansa to Sao Paulo in Brazil, Madrid, Barcelona and Bilbao in Spain. At the same day, Air China opened it route from China to Brazil and Spain through code share.

Frequent Flyer Program Co-operation: FFP members of both airlines can collect and redeem miles on any airline’s flight.

Through Check-in: Through Check-in service provides passengers with efficient and convenient transfer.

Product and Service consistency: The consistent product and services provided by both airlines can further improve the passenger service quality and bring passengers with premium services.

About Ameco

Aircraft Maintenance and Engineering Corporation (Ameco Beijing), located at Beijing Capital International Airport, is a joint venture between Air China Limited and Lufthansa. Ameco Beijing was established on August 1st, 1989. It is not only the leading maintenance, repair and overhaul (MRO) provider in China but also the first aircraft maintenance and engineering company in China with certificates from FAA, EASA, CAAC and 12 other airworthiness authorities. Ameco has the ability to provide domestic and international customers with Boeing and Airbus aircraft line maintenance, overhaul and engine overhaul services.

Cooperation between United – Air China

Having started service to China in 1986, United Airlines was the first U.S. carrier to launch non-stop services between China and the U.S. United Airlines is currently the largest carrier between China and the U.S. 2006 will be the 20th anniversary of United Airlines serving China.

In 2003, United entered into a commercial partnership with Air China that includes codesharing, frequent-flyer benefits and access to airport lounges. Together, the two carriers offer code-share flights across the Pacific and within China. Last year, they expanded the agreement to include cargo.

United doubled the number of flights in 2004 and today operates more non-stop services from Beijing and Shanghai than any other airline. The airline's four daily non-stop flights connect Beijing and Shanghai to Chicago and San Francisco. United also has a sales office in Guangzhou.

In August 2005, United signed a five year agreement with Aircraft Maintenance and Engineering Corporation (Ameco) to conduct airframe heavy maintenance for United's B777 fleet. United will also carry out specialized maintenance work for Air China's aircraft at its maintenance base in San Francisco. Air China and other PRC airlines remain United's largest maintenance customers in the Asia-Pacific region.

In January 2006, United Services Flight Training, a division of United Airlines, announced that it was the first training provider outside of China to be certified under Civil Aviation Administration of China (CAAC) new approval process to train PRC airline pilots.

http://www.staralliance.com/star_all...ina_SAMem.html
_____________________

Shanghai Airlines Invited To Become Member Of Star Alliance

Shanghai, China - 10 May, 2006 - Star Alliance, the airline network for earth, today announced it has invited Shanghai Airlines Co., Limited of Shanghai, China to join the alliance.

With this move both Shanghai Airlines and Star Alliance open a new chapter in Chinese aviation history.

Shanghai Airlines Chairman Zhou Chi said the invitation to join Star Alliance would only further enhance Shanghai Airlines’ position as a leader in the Chinese aviation market.

“With our large domestic network and increasing international routes we believe Shanghai Airlines brings a wealth of experience and value to Star Alliance. We look forward to working with Star Alliance toward full membership over the coming months.”

Star Alliance Chief Executive Officer Jaan Albrecht commented: “For Star Alliance this invitation to Shanghai Airlines represents a giant step forward in the evolution of the alliance. Having a high quality Chinese carrier of the calibre of Shanghai Airlines will add immeasurable value to our network.”

Chairman Chi and Mr Albrecht also added that Shanghai Airlines and Star Alliance would be working closely together to obtain more resources from airport authorities for the mutual benefit of all parties.

Commented Chairman Zhou: With the development of Shanghai Pudong Airport, we should make full use of the airport resources, provide quick and convenient transferring and connecting service which is called "Under One Roof", and offer high-quality service to business passengers. This is also the main character of Star Alliance. We hope that the establishment of the second terminal building in the near future will provide high-standard, high-quality and high-efficiency operating service, thus greatly support Start Alliance.

Star Alliance and Shanghai Airlines will now work toward the formal entry of Shanghai Airlines to the alliance over the coming months.

http://www.staralliance.com/star_all..._Shanghai.html
equivoque no está en línea   Reply With Quote

Sponsored Links
Old May 24th, 2006, 08:27 PM   #62
staff
囧!
 
staff's Avatar
 
Join Date: Oct 2004
Location: Hong Kong | Singapore | Melbourne | Malmö | Copenhagen | Shanghai
Posts: 10,829
Likes (Received): 717

Quote:
Originally Posted by samsonyuen
Cool. Are Shanghai Airlines and Air China linked in anyway?
No. Air China is stately owned and Shanghai Airlines is a private company (the first privately owned airline in China - founded in the mid 80s I think).

Shanghai Airlines is more of a regional/domestic airline. I flew with them earlier this year HGH-CAN and it was a pleasant experience.
__________________

Last edited by staff; May 25th, 2006 at 09:49 AM. Reason: I'm stupid
staff no está en línea   Reply With Quote
Old May 24th, 2006, 10:49 PM   #63
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,350
Likes (Received): 314

Quote:
After going public in 2004, Air China has rapidly reformed through changed working and management practices.
So they're both private. And interesting they didn't mention Cathay Pacific owning 10% of the company.
samsonyuen no está en línea   Reply With Quote
Old May 25th, 2006, 03:33 AM   #64
cyberjaya
KL/PHL/BJ
 
Join Date: Mar 2006
Posts: 474
Likes (Received): 8

Quote:
Originally Posted by staff
No. China Airlines is stately owned and Shanghai Airlines is a private company (the first privately owned airline in China - founded in the mid 80s I think).

Shanghai Airlines is more of a regional/domestic airline. I flew with them earlier this year HGH-CAN and it was a pleasant experience.
Be careful Air China is different from China Airlines. The later one is a Taiwan airline company.
cyberjaya no está en línea   Reply With Quote
Old May 25th, 2006, 09:51 AM   #65
staff
囧!
 
staff's Avatar
 
Join Date: Oct 2004
Location: Hong Kong | Singapore | Melbourne | Malmö | Copenhagen | Shanghai
Posts: 10,829
Likes (Received): 717

cyberjaya,
Of course you're right. The reason of my mix-up is that I flew the crash-prone Taiwanese carrier China Airlines a couple of days ago HKG-TPE (doing TPE-HKG tomorrow).

What I meant is of course Air China - post edited!
It'll be a long while until China Airlines will become a big alliance member.
__________________
staff no está en línea   Reply With Quote
Old May 25th, 2006, 11:16 AM   #66
cladiv
----
 
cladiv's Avatar
 
Join Date: Feb 2004
Location: 上海
Posts: 363
Likes (Received): 0

i have read they will likely go with Skyteam since they already have many codesharing agreements with many airlines of the alliance such as Air France and Alitalia
cladiv no está en línea   Reply With Quote
Old May 26th, 2006, 08:48 PM   #67
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,962
Likes (Received): 18222

China Southern, China Airlines cargo JV deal far off - analysts
26 May 2006

BEIJING (AFX) - A cargo joint venture between China Southern Airlines and Taiwan's China Airlines would allow both carriers to strengthen their operations in strategically important markets, analysts said.

But although the airlines are reportedly discussing a partnership, analysts said a deal is unlikely to be struck soon.

'It will benefit both companies... but it depends on the situation across the Taiwan Strait and there is unlikely to be any substantial progress in the near future,' BOC International analyst Julia Tang told XFN-Asia, following reports in the Taiwan press of a potential partnership between the airlines.

There are no direct air links between China and Taiwan and most cargo flights between them go via Hong Kong.

Taiwan's Economic Daily News cited unidentified industry sources as saying the two airlines are in talks about a cargo joint venture.

China Airlines spokesman Johnson Sun told the newspaper that the carrier had no immediate plans to cooperate in cargo services with Guangzhou-based China Southern, but Xinhua Far East China analyst Tony Xia said that both sides are likely to be looking for an agreement.

'I think both parties have the intention of reaching an agreement,' he told XFN-Asia.

Earlier this week the Shanghai Securities News quoted China Southern's vice general manager Xu Jiebo as saying that the carrier is talking with several strategic and potential investors about establishing a cargo joint venture.

Xu did not provide details of possible partners.

If the two carriers establish a cargo joint venture it would help China Southern strengthen its cargo operations in the international market, while China Airlines would further boost its presence on the mainland following its purchase in January of a 25 pct stake in Yangtze River Express Airlines.

A partnership would also provide China Southern with valuable management experience, Xia said.

Guotai Junan analyst Alan Lam agreed that a tie-up would be beneficial to China Southern, which has weaker cargo operations than its two main national rivals, Air China and China Eastern.

China Southern's cargo operations contributed less than 10 pct of the company's total revenue in 2005, Lam said.

'China Southern wants to improve its international exposure, and maybe China Airlines can help it get more international cargo to Guangzhou or major hubs to allocate to second tier cities,' Lam told XFN-Asia.

But he added that the benefits would be limited because of the lack of a direct link between Taiwan and the mainland.

'There is no news about the opening of a direct link and I do not think it will immediately benefit China Southern,' Lam said.

Ivan Chung, also an analyst with Xinhua Far East China, added that a partnership between China Southern and China Airlines would help both companies save costs.

'There is no direct linkage between Taiwan and China, airlines have to go to Hong Kong, but if China Southern and China Airlines work together they will make significant cost savings,' Chung said.

The new Baiyun International Airport in Guangzhou, where China Southern is based, also wants to become a major hub in the region.

'Baiyun has a lot of room for development, but China Southern itself is not strong enough to drive the traffic so it needs a foreign partner,' Chung said.

'China Airlines can do that, they dominate the Taiwanese cargo market and can divert some of their existing business to China Southern or Guangzhou,' he added.

Lam agreed that getting a foothold in the growing Chinese market would be good for China Airlines' long-term growth prospects.

'China Airlines in the long-term may benefit from the fast-growing cargo industry within China,' he said.

The airline has tried to form partnerships with major Chinese carriers in the past.

A long-running bid for a stake in China Eastern's cargo arm ended after it failed to win approval from the Chinese government, Lam said, adding that China Eastern was also unwilling to sell a major contributor to its earnings growth.

China Airlines's 40 mln usd acquisition of a holding in Yangtze River Express Airlines, a subsidiary of China's Hainan Air group, signalled its intention to compete on the mainland, and a tie-up with China Southern would further strengthen its presence here, Lam said.

But he added that a cargo joint venture with China Southern is unlikely to be profitable in the short-term due to the fiercely competitive domestic Chinese market.

'The cargo market is very competitive in China...it is quite strange for an overseas company to buy into the cargo arm of China Southern, especially as its cargo operations are not doing so well and it has just a few aircraft,' Lam said.

'If China Airlines wants to expand its coverage within China this strategy is ok, but if it wants to increase its linkage to China and other overseas countries this joint venture may not be as good as buying a stake in China Eastern,' he added.

China Southern's cargo fleet consists of two Boeing 747 freighter aircraft.

The company has said it plans to convert six A-300s into cargo jets by the end of this year.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old May 27th, 2006, 10:09 AM   #68
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,350
Likes (Received): 314

It'd be a political hot potato to have a Taiwanese airline in an alliance, though.
samsonyuen no está en línea   Reply With Quote
Old May 27th, 2006, 04:12 PM   #69
Sen
Registered User
 
Sen's Avatar
 
Join Date: Nov 2004
Posts: 3,644
Likes (Received): 24

not really...both Shanghai Airlines and Air China joined the same alliance.
Sen no está en línea   Reply With Quote
Old May 28th, 2006, 12:50 AM   #70
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,350
Likes (Received): 314

The reason it'd be a political hot potato is because the political recognition of Taiwan, and its flag carrier are in question.
samsonyuen no está en línea   Reply With Quote
Old May 28th, 2006, 01:00 AM   #71
Sen
Registered User
 
Sen's Avatar
 
Join Date: Nov 2004
Posts: 3,644
Likes (Received): 24

IIRC, China Airlines doesnt have ROC flag on its plane (it used to..but they changed the livery in late 90s.).

from a unificationist's POV, Taiwan is part of China, but if Shanghai Airlines and Air China are in the same alliance, then that means two airlines from the same country can join the same alliance.
Sen no está en línea   Reply With Quote
Old May 28th, 2006, 12:08 PM   #72
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,350
Likes (Received): 314

I'm not Taiwanese, but I don't assume Taiwan would see it that way. Having said that the two have had some progressing economic links recently. Here's an interesting link in another forum: http://www.flyertalk.com/forum/showt...ight=Taiwanese
samsonyuen no está en línea   Reply With Quote
Old May 28th, 2006, 05:26 PM   #73
Sen
Registered User
 
Sen's Avatar
 
Join Date: Nov 2004
Posts: 3,644
Likes (Received): 24

Quote:
As a Taiwanese, I have to clarify this. While China and Taiwan might have a lot of confilcts, they do work together in business. There are more than 3 million Taiwanese working in mainland China.And, airlines of both sides have numerous cooperations including FFP. I have never heard that Chinese goverment doesn't like Taiwanese airlines to join the global alliances. After all, it's not like UN or ASEAN where the member has to be a country. On the contrary, it encourages closer ecnomic ties so as to facilitate the "unification."
clear enough?
Sen no está en línea   Reply With Quote
Old May 30th, 2006, 05:04 AM   #74
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,962
Likes (Received): 18222

Indian hostesses to start flying on Chinese airline's flights to New Delhi
28 May 2006

BEIJING (AP) - Fifteen Indian air hostesses will soon start serving passengers on a Chinese airline's flights from Shanghai to New Delhi, according to Chinese media reports.

The women will start working on the China Eastern Airline flights June 1, according to the Web site of the official People's Daily newspaper.

"The language is the biggest advantage for them. And as people coming from the same country, they would observe and know better the needs of our overseas passengers," Wu Wenhua, manager of the company's foreign cabin attendants department, told China's state-run China Radio International.

The airline is planning to hire some Russian hostesses in June, CRI reported on its Web site.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 2nd, 2006, 04:37 PM   #75
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,962
Likes (Received): 18222

Air China Cargo to launch Beijing-Dallas Fort Worth service
1 June 2006

BEIJING (AFX) - Air China Cargo will begin a new thrice-weekly service between Beijing and Dallas Fort Worth International Airport on June 17, using Boeing 747 freighters.

Air China Cargo currently serves five US destinations - Los Angeles, San Francisco, Portland, Chicago and New York.

In a statement, Dallas Fort Worth airport said China is the airport's largest air cargo trading partner.

China accounted for more than 66,000 tons of air cargo into the Dallas/Fort Worth customs district last year, the statement said.

Air China Cargo's shareholders are Air China, CITIC Pacific Ltd and China Capital Airport Holding Co, which hold 51 pct, 25 pct and 24 pct stakes, respectively.
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 7th, 2006, 02:19 AM   #76
hkskyline
Hong Kong
 
hkskyline's Avatar
 
Join Date: Sep 2002
Posts: 86,962
Likes (Received): 18222

Air China may yet join oneworld
Agreement with rival Star Alliance likely to be scrapped in share swap changes

6 June 2006
South China Morning Post

The oneworld alliance, whose membership now looks likely to include Air China, generated sales of more than US$1.8 billion from interlining agreements last year as members took greater advantage of feeding passengers into each other's route networks.

Air China last month signed a memorandum of understanding (MOU) with the rival Star Alliance. But with trading suspended yesterday pending an announcement of a share swap with Cathay Pacific Airways, the provisional deal is now likely to be rescinded in favour of a oneworld membership.

Senior oneworld executives did not rule out such a move yesterday in Paris.

"We feel under no pressure in terms of time to sign a mainland carrier. It is as much finding a match for us as it is finding a carrier in the region," John McCulloch, a managing partner in oneworld said before trading was suspended yesterday. "You will see a lot more happen yet before it is all settled. I would be surprised if the [Air China] MOU was rescinded in any way. But stranger things have happened."

The alliance said it would like to see its interlining revenue, which rose 10.7 per cent year on year, grow 20 to 30 per cent a year until the end of the decade.

Revenue from alliance "fairs and sales activities" rose 20 per cent to US$650 million, the alliance said.

Members reckoned they had saved an aggregate US$250 million through co-operative actions such as joint fuel purchasing, sharing airport facilities and engineering and maintenance work.

"To be frank, we have found [co-operating on cost reduction] much more difficult than in the area of finding revenue," Mr McCulloch said. "Nevertheless, it was still a landmark for oneworld. We are making big head roads in engineering and maintenance."

Members spend US$5 billion a year in engineering maintenance, excluding manpower.

It was the only alliance to turn a profit last year, with its members posting aggregate earnings of US$1.8 billion. American Airlines was its only member to finish in the red, posting a loss of US$861 million.

But that may all change next year with Malev and Japan Airlines also joining the alliance; the pair combined to lose US$427 million last year.

Royal Jordanian will also join oneworld, the only alliance without a mainland partner. But that is expected to change after all five of Dragonair's shareholders suspended trading of their shares yesterday.

The profitability of oneworld's members has given room for a relaxed approach towards securing a mainland partner, despite the obvious potential of the market.

"[Finding a China partner] is important but it is not going to be life-threatening for Qantas or any other of the airlines. I don't regard it as an urgent issue at all," Qantas chief executive Geoff Dixon said yesterday. "I'm very relaxed about where the Chinese carriers go. The big game in China is going to be years off yet."

With Shanghai Airlines and Air China both throwing their lot in with Star last month - and China Southern to join the Skyteam alliance this month - the market had aligned oneworld with China Eastern, the country's last unattached major carrier.

But members insisted before trading was suspended yesterday that they were still talking with multiple potential mainland partners.

"It is not a case of membership for membership sake," British Airways chief executive Willie Walsh said. "That is the difference between what oneworld has done and what some of the other airlines have done. For an alliance to have any credibility, the individual members have to be performing well."
__________________
Hong Kong Photo Gallery - Click Here for the Hong Kong Galleries

World Photo Gallery - | St. Petersburg, Russia | Pyongyang | Tokyo | Istanbul | Dubai | Shanghai | Mumbai | Bangkok | Sydney

New York, London, Prague, Iceland, Rocky Mountains, Angkor Wat, Sri Lanka, Poland, Myanmar, and much more!
hkskyline no está en línea   Reply With Quote
Old June 7th, 2006, 02:46 AM   #77
Monkey
BANNED
 
Monkey's Avatar
 
Join Date: Oct 2002
Location: Londinium
Posts: 14,103
Likes (Received): 38

Quote:
Originally Posted by hkskyline
Air China may yet join oneworld
Agreement with rival Star Alliance likely to be scrapped in share swap changes

6 June 2006
South China Morning Post

The oneworld alliance, whose membership now looks likely to include Air China, generated sales of more than US$1.8 billion from interlining agreements last year as members took greater advantage of feeding passengers into each other's route networks.

Air China last month signed a memorandum of understanding (MOU) with the rival Star Alliance. But with trading suspended yesterday pending an announcement of a share swap with Cathay Pacific Airways, the provisional deal is now likely to be rescinded in favour of a oneworld membership.

Senior oneworld executives did not rule out such a move yesterday in Paris.

"We feel under no pressure in terms of time to sign a mainland carrier. It is as much finding a match for us as it is finding a carrier in the region," John McCulloch, a managing partner in oneworld said before trading was suspended yesterday. "You will see a lot more happen yet before it is all settled. I would be surprised if the [Air China] MOU was rescinded in any way. But stranger things have happened."

The alliance said it would like to see its interlining revenue, which rose 10.7 per cent year on year, grow 20 to 30 per cent a year until the end of the decade.

Revenue from alliance "fairs and sales activities" rose 20 per cent to US$650 million, the alliance said.

Members reckoned they had saved an aggregate US$250 million through co-operative actions such as joint fuel purchasing, sharing airport facilities and engineering and maintenance work.

"To be frank, we have found [co-operating on cost reduction] much more difficult than in the area of finding revenue," Mr McCulloch said. "Nevertheless, it was still a landmark for oneworld. We are making big head roads in engineering and maintenance."

Members spend US$5 billion a year in engineering maintenance, excluding manpower.

It was the only alliance to turn a profit last year, with its members posting aggregate earnings of US$1.8 billion. American Airlines was its only member to finish in the red, posting a loss of US$861 million.

But that may all change next year with Malev and Japan Airlines also joining the alliance; the pair combined to lose US$427 million last year.

Royal Jordanian will also join oneworld, the only alliance without a mainland partner. But that is expected to change after all five of Dragonair's shareholders suspended trading of their shares yesterday.

The profitability of oneworld's members has given room for a relaxed approach towards securing a mainland partner, despite the obvious potential of the market.

"[Finding a China partner] is important but it is not going to be life-threatening for Qantas or any other of the airlines. I don't regard it as an urgent issue at all," Qantas chief executive Geoff Dixon said yesterday. "I'm very relaxed about where the Chinese carriers go. The big game in China is going to be years off yet."

With Shanghai Airlines and Air China both throwing their lot in with Star last month - and China Southern to join the Skyteam alliance this month - the market had aligned oneworld with China Eastern, the country's last unattached major carrier.

But members insisted before trading was suspended yesterday that they were still talking with multiple potential mainland partners.

"It is not a case of membership for membership sake," British Airways chief executive Willie Walsh said. "That is the difference between what oneworld has done and what some of the other airlines have done. For an alliance to have any credibility, the individual members have to be performing well."
Interesting article. This could be an intersting week of news for Chinese aviation. I hope that both Air China and Dragonair end up in Oneworld.
Monkey no está en línea   Reply With Quote
Old June 7th, 2006, 07:16 PM   #78
Urban Dave
In Urbanity I Trust
 
Urban Dave's Avatar
 
Join Date: Apr 2004
Location: Urban Area
Posts: 15,122
Likes (Received): 1558

Great News!
Now all LH flights from BCN to FRA have code-share with Air China!
Urban Dave no está en línea   Reply With Quote
Old June 7th, 2006, 08:14 PM   #79
Monkey
BANNED
 
Monkey's Avatar
 
Join Date: Oct 2002
Location: Londinium
Posts: 14,103
Likes (Received): 38

^ Not if it ends up joining Oneworld.
Monkey no está en línea   Reply With Quote
Old June 8th, 2006, 12:07 AM   #80
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,350
Likes (Received): 314

Lots of changes in Chinese aviation alliances this week! Aren't a lot of Air China's codesharing and FF programs aligned with Star Alliance partners already?
samsonyuen no está en línea   Reply With Quote


Reply

Tags
air china, aviation, china, china southern, east asian airlines, guangzhou, hainan airlines, skyteam, star alliance

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Related topics on SkyscraperCity


All times are GMT +2. The time now is 10:11 PM.


Powered by vBulletin® Version 3.8.11 Beta 4
Copyright ©2000 - 2018, vBulletin Solutions Inc.
Feedback Buttons provided by Advanced Post Thanks / Like (Pro) - vBulletin Mods & Addons Copyright © 2018 DragonByte Technologies Ltd.

vBulletin Optimisation provided by vB Optimise (Pro) - vBulletin Mods & Addons Copyright © 2018 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us | privacy policy | DMCA policy

tech management by Sysprosium