British Airways has signalled that it will expand its network in Asia through an expansion of its franchise portfolio rather than a broader alliance with a major carrier in the region. But there remain doubts as to whether airlines in the region are sufficiently developed to meet BA's requirements.
Group chief executive Bob Ayling denied during a September visit to Sydney that BA was holding alliance talks with Japan Airlines to expand its network coverage in North Asia. Renewed speculation about a partnership followed a meeting between BA chairman Sir Colin Marshall and his JAL counterpart, Susumu Yamaji.
Ayling says BA is interested in a franchise partner in Asia, but stresses it has no specific targets in mind. However, while the recent deal with South Africa's Comair indicates that BA is prepared to extend the alliance concept outside of Europe (see feature, page 38) there are few candidates in Asia.
The options centre around smaller regional airlines, though the slow pace of deregulation in Asia leaves only one nominal independent in the largest markets - Malaysia, Thailand, Indonesia and the Philippines. 'Bangkok Air is a good little airline,' suggests Shane Mathews, airline analyst at Kay Hian James Capel in Singapore. 'If it is packaged properly it could work quite well.'
Aside from its stake in Qantas, BA's only other significant agreement in the region is schedule co-ordination with Sempati. But the Indonesian carrier, like a host of others in the region, has growth plans of its own and is unlikely to surrender brand independence at this early stage in its development.
Tom Ballantyne
Source: Airline Business
