USAJPNflyer
Topic Author
Posts: 90
Joined: Fri Jan 03, 2003 6:21 am

Air China Has Joined The Star Alliance?

Fri Aug 29, 2003 5:34 am

A post from the Airline Alliance newsgroup on Yahoo! groups:

United and Air China formalize codeshare deal

------------------------------------------------------------
Air China has joined the Star Alliance, the biggest international
airline codesharing network. United Airlines, flagship of the alliance,
secured the deal Thursday in Beijing.

"Air China aims to become one of the world's major airlines," said Air
China President Li Jiaxiang. "To align with world-class airlines such as
United is a key component of Air China's globalization strategy."

Beginning Oct. 31, Air China can sell tickets on United's daily flights
between Beijing and Chicago, and between Shanghai and San Francisco.

United can sell tickets on Air China's three flights a week from New
York to Beijing, its four flights a week from Los Angeles to Beijing,
and its five flights a week from San Francisco to Beijing.

Air China will also be able to sell travel on its own flights to the
U.S. mainland that include connections over United to other cities
including Honolulu.

United will also be able to sell travel on its own flights to China that
includes transfers to Air China flights connecting to Guangzhou,
Shenyang, Xi'an, Fuzhou and Shenzhen.



Copyright(c) American City Business Journals Inc. All rights reserved.

You can view this article on the web at:
http://pacific.bizjournals.com/pacific/stories/2003/08/25/daily56.html
 
backfire
Posts: 3467
Joined: Fri Oct 06, 2006 8:01 am

RE: Air China Has Joined The Star Alliance?

Fri Aug 29, 2003 6:29 am

Just an example of a publication jumping the gun.

Air China is well-known to be a Star Alliance target but it's yet to gain any kind of formal acceptance. The deal signed is just a codeshare with United - certainly a step towards Star membership but it's a little early to be cracking open the champagne.
 
carnoc
Posts: 758
Joined: Wed Oct 17, 2001 3:15 pm

RE: Air China Has Joined The Star Alliance?

Fri Aug 29, 2003 10:04 am

The deal signed between Air China and United Airlines includes cooperation in following aspects:

* Code-share flights

* Frequent flyer program cooperation

* Facilities sharing

Regards.
 
DTWINTLFLYER
Posts: 293
Joined: Sat Jul 05, 2003 11:24 pm

RE: Air China Has Joined The Star Alliance?

Fri Aug 29, 2003 12:56 pm

goodbye yield for UA flights out of China....they (CA) will sell the tix cheap.
 
tbear815
Posts: 689
Joined: Thu Jun 12, 2003 12:14 pm

RE: Air China Has Joined The Star Alliance?

Fri Aug 29, 2003 2:19 pm

I don't know about revenue, but I think it's good for all concerned. UA can have a flight number that is routed JFK/NRT/PEK - the NRT/PEK leg operated by Air China. Why fly a 744 from NRT/PEK with a very light load, when the connecting passengers can be moved to Air China? This will possibly allow better utilization of the 744's and flight crews. Think of the time saved by not doing the NRT/PEK turn. The same can be said for Air China. When PA was in the Orient, they sometimes used 727's to fly the "auxiliary" legs. UA continued this practice, I believe, and NW still does. I think it's just smart business. With skyrocketing costs involving fuel and labor, it's a win-win situation for both carriers. The same could be said for U.S.-HKG flights with continuing service inland. Hopefully UA will get back to "Worldwide Service" and RTW through India.
 
Vimanav
Posts: 1439
Joined: Thu Jul 31, 2003 4:33 am

RE: Air China Has Joined The Star Alliance?

Fri Aug 29, 2003 7:32 pm

Air China has not yet joined the Star Alliance even though their tie up with UA could be one more step in that direction.

However any fear of low yields ex China will be actually offset by the fact that they would now have access to interior cities in the Chinese mainland without having to extend their flights into these points or resorting to a change of gauge from NRT or any other hub.

I agree with Tbear815 that this would be a smart business move especially for the cash strapped UA who would have to look into such stratgic alliances in order to boost their bottomlines without having to go in for any heavy capital injection.

rgds//Vimanav
Sarfaroshi kii tamannaa ab hamaare dil mein hai, Dekhnaa hai zor kitnaa baazu-e-qaatil mein hai
 
DTWINTLFLYER
Posts: 293
Joined: Sat Jul 05, 2003 11:24 pm

RE: Air China Has Joined The Star Alliance?

Fri Aug 29, 2003 9:40 pm

We had the same deal with CA..it opened up all these cities within China. Yes, that is beneficial, but.......One of the biggest issues NW had was that CA was selling the seats on our flights out of China drastically lower than they should have which just killed any yield on the flights. A lot of times you were looking at $400 RT to the States. It would be one thing if UA and CA were going to actually split the revenue on the flights..You know like us and KLM do.(It doesn't matter which carrier flies the pax across the atlantic, we split the revenue) but that would not happen in the codeshare idea. In the example ORD NRT PEK with CA operating the NRT PEK.....sure the flights might be a little heavier into NRT and out of PEK for UA, but UA and NW already operate full flights in and out of NRT. On most days there are just no seats as it is.

This is where the Star Alliance shows the weakness it has, and for that matter most alliances. Yes, airlines codeshare and FF miles, lounges, etc....but no revenue sharing like the NW/KLM Atlantic operations. Not to be biased and say our tie up with KLM is somehow superior to any other codeshare b/t two carriers, but we do split all money and it doesn't matter which metal is actually doing the flight.

I say good luck to UA .. LH already had begun codesharing with CA and have for some time.. The main problem with CA is they are THE government run airline. China Southern is actually the larger carrier and has less government restrictions/regulations. A year ago we were still waiting for all the dust to settle before trying to find another partner in China....a lot of consolidation within China. Still, China Southern remains the most obvious choice for not only NW but eventually SkyTeam. China Southern codeshares with CO fairly in depth and KLM.

Don't get me wrong Alliances are obviously beneficial on many levels, but if you think that somehow it is going to give a HUGE monetary boost to one particular airline within the alliance, well, it just doesn't happen.
 
UALPHLCS
Posts: 3233
Joined: Thu Jun 28, 2001 5:50 am

RE: Air China Has Joined The Star Alliance?

Sat Aug 30, 2003 1:40 am

These posts have been correct to point out that Air China is only a partner w/ UA at this time. However, It seems that over the life of Star Alliance the fastest way to get into Star is to first become a partner of UA or LH. There are exceptions of coarse, but those two carriers introduce the vast majoristy of carriers into Star.
A little less Hooah, and a little more Dooah.
 
UnitedFirst
Posts: 451
Joined: Mon Jun 11, 2001 12:16 pm

RE: Air China Has Joined The Star Alliance?

Sat Aug 30, 2003 2:44 am

Considering the fact that all of the member airlines of Star Alliance must vote unanimously to introduce a new member within the alliance, I hope that there will be a big push to force Air China to improve certain service standards and modernize further before it is allowed to join.

That certainly isn't a hit at Air China...it would just be nice to see them set a standard for Chinese carriers, and then join the world's leading alliance.

-Derek
 
carnoc
Posts: 758
Joined: Wed Oct 17, 2001 3:15 pm

RE: Air China Has Joined The Star Alliance?

Sat Aug 30, 2003 12:52 pm

Well, Air China is on its way to catch up with other world's leading carriers.

Almost two months ago, Air China launched Internet bookings (E-ticket) service for domestic flyers.

According to Air China officials, international passengers may perhaps be able to enjoy the ease-to-use Internet booking system next year if everything goes well.

Also, as far as I know, Air China could perhaps start-up another service to the US by the end of this year or maybe next year.

Meanwhile, Air China has series of staff exchange programs with some of world's most recognised airlines and there is no doubt that such cooperation between Air China and other foreign carriers will make some progress on Air China's service standard.

Regards.

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