Jane Levere/NEW YORK
In late June, the four carriers announced a new name for their alliance, SkyTeam, which they are promoting globally through a major advertising campaign.
Officials say SkyTeam, which offers travellers a combined 6,402 flights daily, will be the first global alliance "created entirely around our customers. We are dedicated to providing the routes and services that best meet their needs."
To that end, the alliance will operate over 650 airport and city ticket offices serving all member carriers, establish an integrated information technology network and a new web site, www.skyteam.com and offer most frequent travellers special bonuses, such as elite frequent flier programme status and guaranteed economy class reservations.
Officials claim SkyTeam is well-positioned for future growth, since two of its major hubs - Charles de Gaulle Airport in Paris, and Inchon Airport in Seoul - are among the few major hub airports worldwide with room to grow.
Asked about competing alliances Star, oneworld and Wings, Delta chairman Leo Mullin commented: "Star is the alliance we need to catch. It deserves some praise. United and Lufthansa have done a good job getting it off the ground".
Several observers suggest SkyTeam might actually accomplish this. Sam Buttrick, aviation analyst for Paine Webber in New York, says no alliance is "doing a good job in selling through real benefits" to the end user. "They all have a long way to go in delivering their promises to consumers. In that sense, it's still anyone's game to win."
Michael Levine, a professor of law at Harvard Law School and a former marketing director at Continental and Northwest, says that "anyone who thinks we've seen all the alliance cards played is way wrong. The alliance world hasn't worked itself out yet."
As an example, he cites possible problems at Star, where Singapore and Thai reportedly co-exist uncomfortably. "They're still working out who's in and who's out," he says.
Air France told Airline Business that the carrier had been speaking to Thai about a possible link. Air France has also signed a limited codeshare agreement with Iberia, which is part of the oneworld alliance.
| SkyTeam vital statistics | |||||
| Operating Statistics | SkyTeam | Aeromexico | Air France | Delta | Korean Air |
| Destinations served | 451 | 50 | 198 | 227 | 78 |
| Countries served | 98 | 7 | 83 | 29 | 29 |
| Daily departures | 6,402 | 309 | 1,231 | 4,442 | 420 |
| Annual passengers (million) | 174 | 9 | 39 | 106 | 21 |
| Passenger ASKs (million) | 412,816 | 18,360 | 112,465 | 231,845 | 50,146 |
| Passenger RPKs (million) | 302,761 | 12,190 | 85,543 | 168,366 | 36,662 |
| Operating revenue ($ million) | 31,200 | 1,200 | 10,600 | 14,700 | 4,700 |
| Operating income ($ million) | 3,310 | 70 | 1,211 | 1,870 | 159 |
| Net income ($ million) | 1,683 | 60 | 364 | 1,100 | 159 |
| NOTE: Operations and financial figures are for 1999. | |||||
Source: Airline Business
