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LH Tempting Lan To Join Star

Posted: Sat Nov 16, 2002 12:14 pm
by pelicanlarry
From Chilean press (Altavista translation): Keep in mind that United is terminating service to Santiago in January 2003

http://www.emol.com/diario_elmercurio/eyn_v/detalle_diario.asp?idnoticia=0115112002002B0060072&fecha_elegida=15/11/2002

Lufthansa touches to LAN with alliance To change the jacket and to play for the opposite equipment. That is indeed what the German airline Lufthansa looks for of LAN Chile: that it lets comprise of the alliance of airlines One World and is integrated to Star Alliance, the conglomerate that founded the Brazilian Varig along with. The intentions of Lufthansa are so serious that the own president of the directory and executive president (Chief Executive Officer, CEO, in English) of the company, Jürgen Weber, traveled from Germany to touch to the airline and met yesterday with the executive president of LAN, Enrique Cueto, to treat the subject. In spite of belonging to rival alliances, both airlines already have Straits contacts in the area of maintenance, training and transference of load. In fact, this October began to operate the agreement to share lifting capacity for the Latin American routes that Lufthansa does not cover. The main point of conflict would be the competition that would take place with Varig. According to the representative in Chile of the Association evaluates the International of Transporte Ae'reo (IATA), Patricio Sepúlveda, he is not advisable for an alliance that two partners have many shared routes, as it is the case of Varig and Lan. "Although that is a deep analysis that must make each company", it emphasizes. The alliances between the airlines arose to half of the ' 90 with the objective to coordinate the overflowings of demand of the companies and to avoid the indemnifications that are demanded in some countries when leaving to a passenger without flight. Star Alliance is formed by fourteen companies, transports to 292 million passengers to the year and has presence in 124 countries. One World, while, handles to 230 million travellers with the 8 companies that compose it, and lands in 135 countries.

RE: LH Tempting Lan To Join Star

Posted: Sat Nov 16, 2002 3:18 pm
by MAH4546
LanChile is very happy in oneWorld. They have very, very close relationships to American, Iberia, and Qantas. Lufthansa is wasting thier time, IMO.

RE: LH Tempting Lan To Join Star

Posted: Sat Nov 16, 2002 3:44 pm
by Guest
Who knows?

Lufthansa is luring LanChile. First, lure LanChile by Cargo Operation. Secondly, pursuade LanChile to join Star.

Plus, LanChile seems to be happy working with VARIG between Chile-Brazil flight. Despite Star gets VARIG, their presence in the west coast of Latin America is still weak.


RE: LH Tempting Lan To Join Star

Posted: Sun Nov 17, 2002 12:26 am
by pelicanlarry
It seems that United will leave some other stations in South America, besides SCL. Given that scenario, for Lanchile being already (if you add Lan Peru, Lan Ecuador)the largest operator in S. America would probably be very interesting to explore the possibility of also being the principal player for star in said continent.
Their finances are strong, their fleet is new and the cargo operation the largest overall L.A.
I would not discount such a move . Check their route map and see for yourself
http://www28.lanchile.com/English/un/productos/rutas/mapa.htm

RE: LH Tempting Lan To Join Star

Posted: Sun Nov 17, 2002 2:58 am
by JAL
I don't see Lan Chile leaving for Star, they seem very satisfied with OneWorld.

RE: LH Tempting Lan To Join Star

Posted: Sun Nov 17, 2002 3:05 am
by chepos
I doubt Lan will leave Oneworld for Star, with this it is evident that even Star admits that they have a weak presence in South America. Then again as Bigo747 said-who knows?- This industry has seen some extrodinary things happen and if Star does make them a very tempting offer they might consider it.
Chepos

RE: LH Tempting Lan To Join Star

Posted: Sun Nov 17, 2002 4:01 am
by blink182
I'm fed up with Star. Is 55 million airlines not enough to cover the globe?
If Lan Chile wanted to join, they would have shown interest before they joined oneworld. As Chepos said, this is evident of Star admitting they have a weak presence in South America.

My question is, when will the regulators step in? Skyteam and oneworld manage to cover the world with only 8 or 9 airlines vs. Star's 14 or 15 airlines.

blink

RE: LH Tempting Lan To Join Star

Posted: Fri Nov 22, 2002 3:34 am
by ORD Boy 2
LAN Chile wont be leaving oneworld anytime soon

RE: LH Tempting Lan To Join Star

Posted: Tue Nov 26, 2002 1:28 am
by RJ_Delta
Two weeks ago the CEO of Lufthansa, Jürgen Weber came to Chile to negotiate with Enrique Cueto and the other shareholders about the posibility that Lan Chile join to Star Alliance and drop Oneworld. For Lan Chile the Star Alliance is very atractive, specially by its relation with the Brazilian carrier Varig, which has codeshare agreements. The Star Alliance offers for Lan Chile the posibilities to upgrade its cooperation and services in Latin America, specially in Brazil with Varig.

From Santiago, Chile,
RJ_Delta.

RE: LH Tempting Lan To Join Star

Posted: Tue Nov 26, 2002 3:08 am
by Guest
Varig is a nearly bankrupt carrier. At the moment, the carrier is being propped up both by the government and by GE Capital, which fears the consequences of more of its planes being dumped in the desert. While it is true that LAN codeshares with Varig on several routes between their two countries, it is also the case that LAN's longterm strategy is to establish and fund affiliate carriers under the LAN brandname (e.g., LanPeru and LanEcuador) that compete directly with all its Latin American competitors including Varig. If it joined Star Alliance and had to feed passengers to the much larger Varig, Lan would have to give up its own aspirations of being the largest carrier in Latin America.

Moreover, it is important to remember why Lan sought out AA for a codeshare relationship even before oneworld was a reality. AA dominates - it really has no peer - the US-Latin American market out of its strategically placed hub in Miami. When Lan entered into its relationship with AA, it was after much thought about the prospects of competing head to head with American in Miami and elsewhere. Much like the conclusion reached by Grupo Taca in Central America, Lan figured if it couldn't beat 'em it would join 'em. Given AA's future prospects at Miami upon the completion of the new SuperConcourse, it would be ill advised for LAN to join Star and codeshare with United. With American the future looks bright at Miami. With Star, Lan would have to face the prospects of American not only adding service to Santiago and points beyond, but also two probable consequences: (1) United reentering the Santiago market now that it had marketing support from Lan. Why would this be a favorable consequence when at the moment AA and Lan, with full ATI, have managed to achieve a virtual monopoly on Chile-US service? (2) An expanded relationship between AA and TAM, the much healthier and better managed of the Brazilian carriers, the likely successor to Varig as Latin America's largest carrier once Varig goes the way of Aerolineas. Under this prospect, it would be TAM and not Lan that would benefit from the expanded AA dometic network out of Miami. By maintaining their relationship with AA, LAN has been able to keep AA and TAM at arms length and thus provide cover for all their avatars.

But, yeah, LAN will join Star. After all, it makes sense to all of the arm-chair airline CEO's on this board. Better yet, maybe once LAN joins Star, don't you think they should offer DirectTV at every seat just like JetBlue?


RE: LH Tempting Lan To Join Star

Posted: Tue Nov 26, 2002 3:25 am
by backfire
Star is not negotiating any deal with LanChile (or Aerolineas Argentinas for that matter) and that's official.

RE: LH Tempting Lan To Join Star

Posted: Tue Nov 26, 2002 7:46 am
by BBADXB

It is interesting how STAR has so many member airlines in Europe and in Asia, and rather strong in North America, and yet it is rather week in Africa and Australia... and maybe in South America in the future.

Maybe, South African Airways should be lured into STAR; VARIG somehow (don't ask me how) strengthened, and a STAR Alliance airline set up in Oz... now that perhaps NZ might defect to Qantas and oneworld.

 Wink/being sarcastic BBADXB

RE: LH Tempting Lan To Join Star

Posted: Tue Nov 26, 2002 9:07 am
by Guest
Well, whether this is rumour or fact, 1 thing's for sure, nothing ever seems to stay the same for long in the airline industry...

RE: LH Tempting Lan To Join Star

Posted: Tue Nov 26, 2002 9:21 am
by Guest
The Star Alliance offers for Lan Chile the posibilities to upgrade its cooperation and services in Latin America, specially in Brazil with Varig.

Lan Chile also have strong co-operation with Mexicana.

Since Qantas now holds nearly a quarter of ANZ, with speculations of possible alliance with SQ, oneWorld may ended up spliting apart.

RE: LH Tempting Lan To Join Star

Posted: Tue Nov 26, 2002 10:07 am
by Lan_Fanatic
I hope Lan remains in OneWorld.

It seems that every airline in the world can be in Star, and that is what makes the difference between them and OneWorld/SkyTeam