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Hainan Airlines Seeking To Join Alliance  
User currently offlineUA191 From Canada, joined Apr 2010, 53 posts, RR: 0
Posted (3 years 8 months 3 weeks 6 days 4 hours ago) and read 8903 times:

Today I noticed that Hainan Air of China had posted a press release on their website regarding joining an alliance. I remember when they were declined from joining OneWorld in 2006. They still want to join an alliance. The release reads...

Hainan Airlines plans to join a global alliance and will start talks with Star, SkyTeam and oneworld soon, a source from the Chinese carrier told ATWOnline on the sidelines of the IATA AGM in Berlin. "So far, we still haven't had formal talks with any airline alliance, but definitely we would [like to] select one suitable for us," the source said. It is widely speculated that Hainan will join oneworld, but oneworld Managing Partner John McCulloch noted at the AGM that the alliance is not in negotiations with Hainan and is considering its options in China...

The Link for More is http://global.hnair.com/NewsShow.php...lurl=../dynamic/na/en/newsdate.xml

What do you think will happen with them?

Edit: Wrong Link

[Edited 2010-11-08 19:33:16]


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20 replies: All unread, jump to last
 
User currently offlineQazar From Canada, joined May 2006, 326 posts, RR: 0
Reply 1, posted (3 years 8 months 3 weeks 6 days 4 hours ago) and read 8846 times:

Why are they holding talks with SkyTeam? With China Southern, China Eastern, Shanghai Airlines, and to a certain extent China Airlines, SkyTeam is pretty much covered!

OneWorld is too snooty for them.... I say go to Star - they'll be treated best!


User currently offlineUA191 From Canada, joined Apr 2010, 53 posts, RR: 0
Reply 2, posted (3 years 8 months 3 weeks 6 days 4 hours ago) and read 8826 times:

Quoting Qazar (Reply 1):
I say go to Star - they'll be treated best!

Won't that be bad for some of their routes (ie. YYZ-PEK) because other Star airlines already operate some of the routes?



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User currently offlinewedgetail737 From United States of America, joined Aug 2003, 5892 posts, RR: 6
Reply 3, posted (3 years 8 months 3 weeks 6 days 4 hours ago) and read 8741 times:
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It would be prohibitive on Alaska's part, but HU could benefit from a partnership with AS. But with DL flying SEA-Beijing, it's not going to happen.

User currently offlineBOStonsox From United States of America, joined Dec 2007, 1989 posts, RR: 0
Reply 4, posted (3 years 8 months 3 weeks 6 days 2 hours ago) and read 8554 times:

I think OneWorld may be the best alliance for them. AA is weak in Asia and they could work with CX and JL there to beef up that alliance's presence there. Skyteam and Star both have strong presences in Asia but OneWorld not so much. And I can't wait to see them in BOS in a year or two (when they get their 787s).


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User currently offlineOP3000 From United States of America, joined Jun 2009, 1763 posts, RR: 2
Reply 5, posted (3 years 8 months 3 weeks 6 days 1 hour ago) and read 8537 times:

Quoting UA191 (Thread starter):
It is widely speculated that Hainan will join oneworld, but oneworld Managing Partner John McCulloch noted at the AGM that the alliance is not in negotiations with Hainan and is considering its options in China...

I'm not sure what other options oneworld has at this point in China, besides someone bailing from one of the other alliances. IMO if oneworld accepted S7, then they can probably be flexible enough to accept Hainan at this point.


User currently offlineDelimit From United States of America, joined Jan 2009, 1504 posts, RR: 2
Reply 6, posted (3 years 8 months 3 weeks 5 days 21 hours ago) and read 8164 times:

Oneworld woe make the most sense, by far. In either of the other alliances they'd be playing second fiddle to their larger Cuinese brethren.

User currently offlineCoal From United States of America, joined Aug 2006, 2006 posts, RR: 9
Reply 7, posted (3 years 8 months 3 weeks 5 days 19 hours ago) and read 8008 times:

How would Hong Kong Airlines and Hong Kong Express fit into this?

Hainan offer a very decent product in China, IMO above and beyond MU and FM, and on occasion slightly better than CZ and CA.

Cheers
Coal



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User currently offlineskyhigh From Australia, joined Nov 2005, 235 posts, RR: 6
Reply 8, posted (3 years 8 months 3 weeks 5 days 19 hours ago) and read 7940 times:

Quoting Coal (Reply 7):
How would Hong Kong Airlines and Hong Kong Express fit into this?

I imagine that is the problem with them joining oneworld. I don't see Cathay welcoming them with open arms.

Quoting UA191 (Thread starter):
and is considering its options in China

And they are???

Quoting OP3000 (Reply 5):
IMO if oneworld accepted S7, then they can probably be flexible enough to accept Hainan at this point.

S7 are a quality Airline with a large albeit mainly domestic network. They are far superior to Transaero and have a good reputation. A quick look at the reviews on Skytrax will reflect this.

If anyone is the odd man out in oneworld, then it is definitely Air Berlin.


User currently offlinerunway23 From US Minor Outlying Islands, joined Jan 2005, 2185 posts, RR: 36
Reply 9, posted (3 years 8 months 3 weeks 5 days 19 hours ago) and read 7930 times:

Quoting OP3000 (Reply 5):
I'm not sure what other options oneworld has at this point in China, besides someone bailing from one of the other alliances. IMO if oneworld accepted S7, then they can probably be flexible enough to accept Hainan at this point.

Well I'd even go on to say oneworld needs Hainan more than the other way around and oneworld's current strategy is being aggressive with carriers from BRIC countries. If they get Hainan in China and TAM or GOL in Brazil they'll be all set.


User currently offlineUA191 From Canada, joined Apr 2010, 53 posts, RR: 0
Reply 10, posted (3 years 8 months 3 weeks 5 days 19 hours ago) and read 7909 times:

Quoting skyhigh (Reply 8):
And they are???

OneWorld

Quoting skyhigh (Reply 8):
IMO if oneworld accepted S7, then they can probably be flexible enough to accept Hainan at this point.

The reason that Hanian was denied last time was because of their poor profitability at that time. They have a much better product now and are very profitable.

Quoting skyhigh (Reply 8):
I imagine that is the problem with them joining oneworld. I don't see Cathay welcoming them with open arms.

Maybe Hong Kong would stay separate from Hainan for the reason of joining OneWorld alone? They could still be codeshare partners, but Hong Kong would operate separately.



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User currently offlineordjoe From United States of America, joined Aug 2010, 691 posts, RR: 0
Reply 11, posted (3 years 8 months 3 weeks 5 days 17 hours ago) and read 7652 times:

OW better get right on this and do it right. Their "wait and see" attitude towards China puts them at a serious disadvantage.

User currently offlineaaway From United States of America, joined Oct 2003, 1521 posts, RR: 14
Reply 12, posted (3 years 8 months 3 weeks 5 days 17 hours ago) and read 7610 times:

Wondering if the fact that Hainan's current GM of North America being an ex-AMR exec might have some bearing on this.


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User currently offlineMD11A340 From China, joined Jan 2007, 24 posts, RR: 0
Reply 13, posted (3 years 8 months 3 weeks 5 days 16 hours ago) and read 7329 times:

I don't often fly HU since their bonus can only be burned in very limited way.
I think star would be a better choice. HU quite well covered the 2nd, 3rd tier cities. Go! Go! HU!
They have much better inflight service then CA...   


User currently offlineDelimit From United States of America, joined Jan 2009, 1504 posts, RR: 2
Reply 14, posted (3 years 8 months 3 weeks 5 days 16 hours ago) and read 7153 times:

Quoting MD11A340 (Reply 13):
I think star would be a better choice.

Why?


User currently offlineLX138 From United Kingdom, joined Jul 2009, 391 posts, RR: 0
Reply 15, posted (3 years 8 months 3 weeks 5 days 16 hours ago) and read 7126 times:

I do feel for them. Nobody wants them!


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User currently offlineDTWHKG From United States of America, joined Feb 2010, 43 posts, RR: 0
Reply 16, posted (3 years 8 months 3 weeks 5 days 15 hours ago) and read 6982 times:

Quoting Qazar (Reply 1):
OneWorld is too snooty for them.... I say go to Star - they'll be treated best!

More precisely, it is CX that is too snooty for them.


User currently offlineAA1818 From Trinidad and Tobago, joined Feb 2006, 3429 posts, RR: 4
Reply 17, posted (3 years 8 months 3 weeks 5 days 14 hours ago) and read 6647 times:

Quoting runway23 (Reply 9):
Well I'd even go on to say oneworld needs Hainan more than the other way around and oneworld's current strategy is being aggressive with carriers from BRIC countries. If they get Hainan in China and TAM or GOL in Brazil they'll be all set.

Don't forget that oneworld has virtually no African presence (other than BA's Comair operations in South Africa).

If the don't take Hainan, I think that oneworld is hoping that CX can draw CA away from Star and bring it into the fold of the alliance. Like what Sky Team tried unsuccessfully to do through DL.

AA1818



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User currently offlineflyingalex From Germany, joined Jul 2010, 1016 posts, RR: 0
Reply 18, posted (3 years 8 months 3 weeks 5 days 11 hours ago) and read 6085 times:

Quoting skyhigh (Reply 8):
If anyone is the odd man out in oneworld, then it is definitely Air Berlin.

Who, incidentally, have an extensive mileage-earning cooperation and a fair amount of codesharing with none other than Hainan Airlines. Perhaps AB managed to relate some positive experiences with Hainan to their soon-to-be oneworld partners?

Of the big three, I also see oneworld being the best fit for Hainan.



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User currently offlineDFWEagle From United States of America, joined Dec 2006, 1071 posts, RR: 9
Reply 19, posted (3 years 8 months 3 weeks 5 days 11 hours ago) and read 5942 times:

Hainan Airlines would be a very good fit in the oneworld alliance, except from the point of view of Cathay Pacific which already co-operates extensively with Air China and has cross-ownership with them.

While they are substantially smaller than the “big 3” Chinese carriers, they are the next largest airline with a robust domestic route network. Despite the name, their largest hub is in Beijing where they offer good access to over 30 mainland cities. PEK is one of the most important Chinese markets and is already served by oneworld members AA, BA, JL and AY which would all benefit from the access to interior markets that HU would provide. As a major transportation hub, It is well located geographically for travellers from North America, Japan and Europe and would complement CX’s southern hub in Hong Kong. HU would also benefit from the additional passengers fed into their route network by these carriers. If they joined Star or SkyTeam, they would be fighting with the larger CA or CZ for this, both of which have a big presence in Beijing. With oneworld, they would be the exclusive mainland Chinese carrier.

Hainan also has a very good product and service, especially compared to their domestic competitors. They were recently named as the best airline in China in the latest Skytrax airline awards, so they would fit right into oneworld in that respect. They operate a very modern fleet of around 100 A319's and 737-800's, as well as A330's and A340's for long haul.

It’s also worth noting that Hainan has few long-haul destinations, but these include Berlin, Budapest and Moscow, which are (or will be) oneworld hubs for Air Berlin, Malev and S7 respectively. They already have agreements with AB and MA, which they could develop further to help feed these routes.

For AA in particular, HU would replace MU as their domestic Chinese partner. AA could use their ORD-PVG and LAX-PVG flights exclusively for O/D on the Chinese side, since Shanghai is a larger O/D market, but quite poorly situated for connections. They could later add LAX-PEK to complement ORD-PEK and use these flights for both the local market and for domestic connections within China.



Ryan / HKG
User currently offlineJAL From Canada, joined Apr 2000, 5083 posts, RR: 8
Reply 20, posted (3 years 8 months 3 weeks 4 days 18 hours ago) and read 4947 times:

Weird, that OneWorld doesn't seems to be interested in Hainan.

In an unrelated event, now that Mexicana is bankrupt, who you think OneWorld will recruit to fill the void left by Mexicana?



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