Max Kingsley-Jones/LONDON

Talks are under way which could lead to the creation of a worldwide airline alliance grouping involving British Airways, American Airlines, Japan Airlines (JAL) and Cathay Pacific Airways. If the deal is cemented it would rival that of the Lufthansa/United Airlines-led Star Alliance.

JAL, which recently cemented a tie-up with American, following the US-Japan open skies agreement, has now begun talks with BA on a possible international alliance. Cathay Pacific has yet to decide on a global partner and although the American/BA group is favoured, Star is still in the running. Cathay is already in active talks with the UK carrier, but these, like those between JAL and BA, are believed to be some way from being finalised. The UK airline was unavailable for comment.

JAL is seeking a "major European" airline with a comprehensive network to give it access to the region. It now relies on simple codeshares with KLM and Air France. JAL in return offers it Asian and transpacific connections, as well as access to its huge domestic market. JAL already co-operates with BA partner Qantas.

Any agreement between BA and Cathay is likely to be some months away, but the Hong Kong-based airline is thought to consider the American/BA grouping a heavier and higher quality prospect compared to the rapidly growing collection of Star Alliance airlines, which is viewed as becoming too big and unwieldy to be effective.

Although the impetus to have Cathay on board comes from BA and Cathay, rather than JAL, the Japanese carrier says that it would not have a problem with Cathay being a member of the group.

Meanwhile, the burgeoning Star Alliance looks set to admit yet another new international carrier, following separate announcements by Lufthansa and United Airlines of planned strategic alliances with All Nippon Airways (ANA).

In November, Lufthansa also signed an initial agreement with Singapore Airlines, which is expected eventually to lead to the carrier becoming a member of the Star grouping. SIA is also going through the approval process of forming an alliance with Ansett Australia and Air New Zealand, both which have also expressed a desire to be come Star members.

Source: Flight International