Singapore Airlines is expected to become the seventh member of the Star Alliance by the first quarter of 1998, but uncertainty hangs over the final Asian line-up of the largest alliance group.
SIA took its first step on the Star trail at the end of November when it signed a strategic partnership with Lufthansa. The deal coincided with the cancellation of SIA's Global Excellence alliance with Swissair and Delta Air Lines (see story, right).
The Lufthansa-SIA link involves codesharing on three times weekly Frankfurt-Singapore services from April. In July, a series of codeshares will start between the two hubs and beyond, as well as SIA's on-flight from Frankfurt to New York. The deal includes merged frequent flyer programmes, while maintenance and cargo links are also under review.
Lufthansa chairman Jürgen Weber says Star could grow to include nine carriers, with a first tier of global airlines and a second grouping providing access to niche markets. The addition of SIA to Lufthansa, United, SAS, Air Canada, Varig and Thai Airways International creates a group with 1996 revenues of US$50.2 billion.
SIA is expected to be followed into Star by Air New Zealand and Ansett Australia in the first quarter of 1998. Both carriers are existing United partners. The remaining line-up requires others to shed current partners or Star to reshuffle its current line-up if Weber's prediction of a nine-airline line-up is maintained. Two prospective members, South African Airways and All Nippon Airways, remain tied to American Airlines and Delta, respectively.
United is pushing for the inclusion of Cathay Pacific, and the Hong Kong carrier has indicated it is there to be wooed. But Cathay's inclusion could see the sacrifice of Thai International as the north Asian leg of Star, or at least its demotion to a regional feeder. United is also courting Air China for Star.
Lufthansa concedes that Singapore will replace Bangkok as its main Asian hub, a tacit admission that Thai's role will change. Until the SIA announcement, Lufthansa had maintained it would use Bangkok as its Asian base.
SIA had drifted in the Global Excellence grouping, a process which accelerated following the departure of Delta chairman Ron Allen, who had close personal ties with SIA deputy chairman Dr Cheong Choong Kong. SIA's strong market position and healthy finances had allowed it to remain aloof from the alliances game until a really strong offer arrived.
Once the alliance between SIA and United is sealed, it is clear that Singapore will be the strategic focus for Star in southeast Asia. If negotiations are sealed with Cathay Pacific, Hong Kong would then play the central role in North Pacific operations.
Tom Ballantyne
Source: Airline Business
