NICHOLAS IONIDES / SINGAPORE
Airlines aim to opt for rival groupings after partner deal
Air New Zealand (ANZ) and Qantas are exploring the possibility of remaining in rival multilateral alliances even if the Australian carrier is successful in its bid to acquire 22.5% of ANZ.
Studies are being carried out by the two would-be partners that they hope can lead to ANZ remaining in the Star Alliance and Qantas staying in Oneworld, say sources close to the airlines.
Whether the individual alliance groupings will support this is questionable, the sources say, as both Star and Oneworld have regulations barring their members from having ties with airlines from other multilateral groupings.
"There are definitely some corporate governance issues that the two alliances have to address," says one source, "but it may be possible."
Regulators, who have already expressed concern that a tie-up between the two will reduce competition, would probably prefer them to remain in separate alliances, the sources add.
ANZ and Qantas announced their plans for an equity-based bilateral alliance in November and their proposals are being scrutinised by regulators on both sides of the Tasman Sea. Decisions are expected by June.
Under the proposed deal Qantas would acquire 22.5% of state-owned ANZ for around NZ$550 million ($295 million) and the two carriers intend to codeshare on many of their respective services.
Most observers have speculated that ANZ will be forced to leave Star, partly because Qantas is minority owned by Oneworld's British Airways and the two have a successful joint venture for services between Australia and Europe. BA has indicated that it is committed to retaining its stake in Qantas.
While some analysts have questioned Qantas's commitment to Oneworld, the sources say it is unlikely to opt out in favour of Star. They say ANZ in particular wants to keep its alliance relationships in place and is the one driving the studies to determine whether this will be possible.
In announcing plans for its alliance with Qantas in November, ANZ said "it should not be assumed that Air New Zealand will leave the Star Alliance".
Star has not received specific proposals from the carrier, but it will be keen to keep it in the grouping as it is its only member in Australasia. It lost Australia's Ansett as a partner following that airline's collapse in September 2001.
ANZ and Qantas decline to comment on their alliance plans. Oneworld says, however: "We have had very firm indications from Qantas that it wants its entire operations to be within the Oneworld alliance, but ultimately ANZ's future alliances are up to its new strategic board."
Source: Flight International
