Chris Jasper/LONDON
The planned launch of the so-called Wings alliance is in doubt after a disagreement between Dutch flag carrier KLM and Continental Airlines of the USA - two of the four major airlines that had been expected to launch the grouping this year.
Sources close to the pair say they have failed to agree on how closely they should be linked in the alliance. KLM and its close European ally Alitalia are now expected to join up with Northwest Airlines to work on a three-cornered partnership, leaving Continental on the sidelines.
KLM says the Houston-based airline is likely to be brought in at a future date, but it is unclear whether the launch of Wings (which may be renamed) will be delayed until this is possible, or whether the three airlines will go ahead without Continental.
With the Star Alliance (led by Lufthansa and United Airlines), oneworld (led by American Airlines and British Airways) and the smaller Qualiflyer grouping (led by Swissair) well established, the Wings airlines cannot afford to stall for long. A delayed launch would leave the carriers with an uphill battle to establish their brand.
Wings' problems could be compounded if Delta Air Lines and Air France launch their own global alliance this autumn. The pair are in the process of recruiting launch members.
KLM has made it clear that the clash with Continental excludes the US carrier from the picture for the time being. "The partners are currently engaged in negotiating the final details of the partnership between KLM, Northwest and Alitalia," it says. "Once that is completed, they will begin intensive talks with Continental about a possible alliance."
The KLM-Continental disagreement is thought to centre on a common revenue policy on transatlantic routes, with the US carrier favouring a loose agreement.
KLM and Alitalia have embarked on a near merger, and Northwest has a 51% holding in Continental. KLM, Alitalia and Northwest applied for US anti-trust immunity for a three-way alliance in May, and say they hope to get approval soon.
• Singapore Airlines plans to join the Star Alliance at a meeting of the group's chief executives in Tokyo in October, Flight International's sister on-line service Air Transport Intelligence reports. SIA had been expected to commit to Star at an earlier meeting, but failed to do so after a wrangle with alliance member Air New Zealand over ownership of Ansett Australia, and because bilateral agreements were not in place.
Source: Flight International
