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Air China To Oneworld, China Eastern To Star?  
User currently offlineEnviroTO From Canada, joined Aug 2004, 825 posts, RR: 0
Posted (4 years 6 months 2 weeks 7 hours ago) and read 12321 times:

With the growing ties between Air China and Cathay Pacific, and the growing ties between China Eastern and Singapore Airlines not to mention the merger of Star Alliance partner Shanghai Airlines, what is the likelihood of Air China leaving Star for Oneworld and China Eastern choosing to go with Star Alliance? It doesn't make sense to me to have deepening ties in ownership or commercial agreements between airlines which are in competing alliances. The prospect of China Eastern, Air China's true rival, being in Oneworld where it will work together with Cathay Pacific, a company it has financial and commercial ties to, makes no sense. It would even make less sense if anti-trust immunity aspects of the alliances reach China. I guess the other question is, what is the probability of China Eastern choosing Star Alliance, and Air China's deepening ties to Cathay Pacific leading to Cathay Pacific to join Star Alliance as well leaving Oneworld with Hainan Airlines?

10 replies: All unread, jump to last
 
User currently offlineAmerican 767 From United States of America, joined May 1999, 3823 posts, RR: 12
Reply 1, posted (4 years 6 months 1 week 6 days 22 hours ago) and read 11407 times:
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I don't know if Air China will join One World, but I definitely don't see Cathay Pacific leaving One World to join Star. I'd be very upset if Cathay Pacific switches to Star, however I don't think this will happen. And Cathay was a founding member of One World back in 1998.
Singapore leaving Star and switch to One World, that would be real nice, but I don't think that will happen either.

Ben Soriano



Ben Soriano
User currently offlinejfk777 From United States of America, joined Aug 2006, 8386 posts, RR: 7
Reply 2, posted (4 years 6 months 1 week 6 days 21 hours ago) and read 11235 times:
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Star would be too crowded if CX joined with Star having Thai, Singapore, Cathay, Air China, Asiana and ANA. Its too crowded now with all those airlines minus Cathay ( its in OW). The Star alliance needs to stop admitting all who apply and become more of a club.

User currently offlinehuaiwei From Singapore, joined Oct 2008, 1114 posts, RR: 2
Reply 3, posted (4 years 6 months 1 week 6 days 21 hours ago) and read 11177 times:

Quoting jfk777 (Reply 2):
Star would be too crowded if CX joined with Star having Thai, Singapore, Cathay, Air China, Asiana and ANA. Its too crowded now with all those airlines minus Cathay ( its in OW). The Star alliance needs to stop admitting all who apply and become more of a club.

I won't bet on CX joining Star, but to say Star is crowded with Asian airlines is a little off. The Asian market is absolutely huge and growing exponentially. Those airlines mentioned to do not cover all of Asia well. If Star can have a multitude of European members, many of whom have bases just a few hundred kms apart, I fail to see why they cannot have even more Asian members.



It's huaiwei...not huawei. I have nothing to do with the PRC! :)
User currently offlinemigair54 From Spain, joined Jun 2007, 1744 posts, RR: 0
Reply 4, posted (4 years 6 months 1 week 6 days 20 hours ago) and read 10892 times:

I hope they join OW, so we could see at least IB flying to China....HKG and PEK.

User currently offlineaa1818 From Trinidad and Tobago, joined Feb 2006, 3435 posts, RR: 4
Reply 5, posted (4 years 6 months 1 week 6 days 20 hours ago) and read 10856 times:

I don't know the workings of Chinese airlines very well, nor do I have any inside information on Alliances, but it would certainly seem logical for Air China to leave Star Alliance, and join its stakeholder CX in oneworld. Perhaps that is why Star Alliance is in talks with China Eastern; maybe they have an inkling that CX and CA want to deepen their relationship which could lead to CA jumping ship.

Considering the Shanghai Airlines/ China Eastern Relationship as well, MU in Star Alliance seems to be the next logical step. This IMHO would make Star Alliance somewhat overcrowded for Chinese Carriers. Someone is going to lose out and perhaps Air China feel it might be them.

I am a loyal AA flyer and utilize my oneworld connections wherever possible. I am hoping and praying that Air China jump ship and join oneworld. I understand that they are an excellent airline- one of the best, if not the best on the mainland.

AA1818



“The moment you doubt whether you can fly, you cease for ever to be able to do it.” J.M. Barrie (Peter Pan)
User currently offlinehuaiwei From Singapore, joined Oct 2008, 1114 posts, RR: 2
Reply 6, posted (4 years 6 months 1 week 6 days 18 hours ago) and read 10194 times:

Quoting aa1818 (Reply 5):
I am hoping and praying that Air China jump ship and join oneworld.

The main stumbling block is probably the PRC government. They still seem intent on keeping their flag carrier in the world's largest alliance. In fact when the CA-CX tie-up was first announced, my gut feel was that it is more because CA wants to indirectly tap into CX's network and its alliances and rein it in, then for CA itself to actually leave its entrenched position.



It's huaiwei...not huawei. I have nothing to do with the PRC! :)
User currently offlineOP3000 From United States of America, joined Jun 2009, 1774 posts, RR: 2
Reply 7, posted (4 years 6 months 1 week 6 days 18 hours ago) and read 9797 times:

Recent rumors point to AA and MU holding alliance talks.

In a 3-alliance universe, there are a limited number of choices for airlines that wan't to maximize the feed they can get. So assuming CX and CA will eventually be one, they won't want to be in the same alliance as SQ/MU. IMO, CA (and CX by extension) will probably have first pick and will be in their preferred alliance, and MU/SQ will end up in the other.


User currently offlinemogandoCI From , joined Dec 1969, posts, RR:
Reply 8, posted (4 years 6 months 1 week 6 days 18 hours ago) and read 9683 times:

That's the oneworld mindset that ends up hurting it instead of helping it in establishing a premium and exclusive brand..... look how panicked AA was when they nearly lost JL and possibly leaving the bulk of Asia's connectivity responsibilities to CX (which is major backtracking if u have to do something like SFO-HKG-PEK). And did i mention there are zero AA flights between their hubs and CX's HKG megahub?

The whole point of alliances is broadest network access within acceptable differences in service quality. You can't run a whole freaking alliance based on transatlantic duopolies and dominance on the Kangaroo route. There's a lot to flying than going through LHR for every trip. Speaking of which, i don't think MALEV exactly fits the "club" that AA/BA wants it to be.

Quoting jfk777 (Reply 2):
Star would be too crowded if CX joined with Star having Thai, Singapore, Cathay, Air China, Asiana and ANA. Its too crowded now with all those airlines minus Cathay ( its in OW). The Star alliance needs to stop admitting all who apply and become more of a club.


User currently offlinekiwiandrew From New Zealand, joined Jun 2005, 8572 posts, RR: 13
Reply 9, posted (4 years 6 months 1 week 6 days 17 hours ago) and read 9397 times:
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Quoting OP3000 (Reply 7):

Recent rumors point to AA and MU holding alliance talks.



.... and Skyteam and MU holding alliance talks , and A* and MU holding alliance talks . Not just rumours either - there was a report recently in the WSJ - but for some reason when I try to paste the link it does weird things to my post .


I have to admit that my preferred scenario would be for CA to lure CX into *A ... OW would be more than welcome to have the overhyped SQ with its hub in ultra-dull SIN in exchange   - unfortunately I dont see this happening ...but I can dream , can't I ?

I suspect that MU will go to Skyteam as they have been developing strong links with CZ , which would leave rapidly growing HU for Oneworld . ( A couple of years ago there were some reports that JL would look at sponsoring them for OW membership - not sure if they are really in a position to sponsor anyone at the moment . )



Moderation in all things ... including moderation ;-)
User currently offlineLX138 From United Kingdom, joined Jul 2009, 396 posts, RR: 0
Reply 10, posted (4 years 6 months 1 week 6 days 14 hours ago) and read 7834 times:

The main arrangement between CA and CX is a financial one with each carrier having a shareholder in one another - I believe their commercial ties are very limited

Quoting EnviroTO (Thread starter):
The prospect of China Eastern, Air China's true rival, being in Oneworld where it will work together with Cathay Pacific, a company it has financial and commercial ties to, makes no sense.

It does make sense, from a strategic point of view it could certainly be justified - don't put all your eggs in one basket so to speak. Malev was until recently majority owned by a group that have far stronger ties to Star Alliance yet it's always remained in oneworld.

Quoting mogandoCI (Reply 8):
The whole point of alliances is broadest network access within acceptable differences in service quality. You can't run a whole freaking alliance based on transatlantic duopolies and dominance on the Kangaroo route. There's a lot to flying than going through LHR for every trip. Speaking of which, i don't think MALEV exactly fits the "club" that AA/BA wants it to be.

Nothing wrong with Malev at all!



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