As oneworld's members post their first collective net loss, totalling $1.7 billion in 2008, the alliance is intensifying its cost savings efforts.Managing partner John McCulloch says: "Oneworld is ramping up its cost reduction activity. Like other alliances, we have focussed more on joint revenue than cutting costs and our ambition is to do much more on that."Oneworld has already delivered $310 million in savingsthrough joint procurement.
The group is planning to add Russian carrier S7 in 2010 and Mexicana later this year. American Airlines' chief executive and oneworld chairman Gerard Arpey says: "We have been, and will remain, very selective about the airlines we consider as future recruits." He says oneworld has always favoured quality over quantity, adding that there are few opportunities remaining without diluting the alliance's model. But oneworld is "paying attention to developments" in both South America and mainland China. Africa is another white spot for the alliance.
Oneworld is waiting on European and US anti-trust clearance for American Airlines, BA, Finnair, Iberia and Royal Jordanian.
Arpey says: "The circumstances today are dramatically different to last time we applied. If facts matter, we are very optimistic we will receive approval on both sides of the Atlantic."
He adds that the application has received 3,500 letters of support and "only a handful" of objections. US authorities are expected to take their decision by October, while Europe is expected to rule by year-end. BA chief executive Willie Walsh says: "We have advised the European Commission that we would like them to go forward and present their statement of objections as quickly as possible, preferably by July. We will respond quickly."
Iberia chief executive Fernando Conte adds: "[The clearance] is a must, not only for us, but for our customers."
Source: Airline Business
