Andrew Doyle/MUNICH
Swissair is claiming that its faltering alliance remains intact, despite the spectacular defection of core Qualiflyer Group member Austrian Airlines to the rival Star Alliance camp. Austrian and its partially-owned associates Lauda Air and Tyrolean Airways will assume full Star membership in the second quarter of next year.
The Austrian flag-carrier's departure significantly weakens Qualiflyer, removing a number of frequencies and 15 destinations, most in Eastern Europe. Swissair hopes to partially offset the loss by forming ties with LOT Polish Airlines and Malev of Hungary, although the pair are also being targeted by Lufthansa/United-led Star and British Airways/American Airlines-led oneworld.
Swissair parent SAirGroup chief executive Philippe Bruggisser says Austrian's decision is "manageable". He says the company will continue to pursue a multi-hub system in Europe together with small and medium sized airlines.
Of the eight carriers left in Qualiflyer, however, all but one - THY Turkish Airlines - are partially or wholly owned by SAirGroup, making the alliance little more than a Swissair extended family.
Although Swissair still codeshares with Atlantic Excellence partner Delta, it was the US major's alliance with Air France that precipitated the Swiss airline's split with Austrian and the US deal may eventually be terminated. Swissair recently signed a similar deal with American, and recent developments will intensify speculation that it will join oneworld.
Austrian says it was forced to re-evaluate its alliance strategy after Delta aligned with Air France and that tensions had been running high since SAir attempted to boost its holding in Austrian to 19%. Austrian viewed the move as a covert attempt by SAir to achieve a management veto.
Austrian claims Star membership will add AS300 million ($23 million) to annual revenues from 2001. The Vienna-based carrier's defection could mean it has to pay compensation to Swissair - it is seeking to leave in six months although many contracts require termination notice of one year.
Delta's vice president, Europe, Stephan Egli, says Austrian would have been offered a leadership role in Eastern Europe had it joined the US giant's alliance. He adds that it is "rather unlikely" that the daily Atlanta-Vienna service, which would have gone twice daily, will be retained, as it will not get enough 'feed'. A planned daily Cincinnati-Vienna flight will also be ditched, as will recently announced codeshares beyond Vienna to Eastern Europe and Africa. Delta says it will continue flying to Zurich from Atlanta and Cincinnati.
Source: Flight International
