Paul Lewis/SINGAPORE
The recently established Star Alliance is set to further expand in Asia, with both Cathay Pacific Airways and Singapore Airlines (SIA) now holding separate discussions to join the global partnership.
According to industry sources, talks between Star and the two Asian airlines have been under way for some months. The discussions are understood to be complementary in nature, allowing for the admission of both Cathay and SIA to the three-month old alliance between Air Canada, Lufthansa, SAS, Thai Airways International and United Airlines.
"Discussions have been going on for some months...but nothing has yet been decided", says an airline official within the Alliance. He adds that there is ultimately room for two or more Asian carriers to join, explaining that "-there are some different market areas that need to be covered in the future, such as China."
The admission of Cathay and SIA together, however, would raise serious questions about the future position and role of founding Star member Thai.
Several key alliance members are known to be voicing disappointment with the performance of the Thai national carrier and the contribution it makes.
Thai's position has been undermined in part by the Thai Government's decision to postpone construction of Bangkok's planned new international airport at Nong Ngu Hao. The existing Don Muang Airport is facing capacity constraints and the country's transportation and communications ministry is proposing an interim 11.8 billion baht ($377 million) expansion to relieve congestion.
Cathay has traditionally been cold to the idea of an international alliance, questioning the perceived benefits it gives the airline.
There has been some concern more recently that the Hong Kong carrier was in danger of being left behind by the establishment of Star and the planned American Airlines/British Airways/Qantas alliance.
Star is keen to capitalise on Cathay and its associate carrier Dragonair's links into mainland China, as well as the opening of Hong Kong's new airport at Chek Lap Kok. "China is the jewel in the crown; it is the biggest market in Asia outside of Japan," says a Hong Kong analyst.
SIA would give Star improved access to Australasia and the South Pacific through its own recent tie-up with Ansett Australia and Air New Zealand. What effect the alliance would have on SIA's existing Global Excellence partnership with Delta Air Lines and Swissair is unclear.
The moves to recruit SIA and Cathay form part of a wider push by the Star Alliance to complete its coverage of South America, Africa and Asia. Varig has already signed an agreement to join the alliance from October, while South African Airways and All Nippon Airways are also in discussions to join the global grouping.
Source: Flight International
