F 
R

1
1
- 
9 
8

---

Home | Update | LATEST ISSUE | Gallery | FR Profile | Datafiles | FR 11/98

ONEWORLD TAKES ON THE STARALLIANCE

The Aviation Community had to wait for the answer. It took one and a half years to bring the counterpart of the "Star Alliance" onto the market. On 21 September the global airline alliance "OneWorld" was introduced in London. The partners are American Airlines, British Airways, Canadian Airlines, Cathay Pacific and the Australian Qantas. Work will start at the beginning of 1999. As the press text says this trademark will guarantee "the best of care and information" for the passengers and simply give them "optimum return for the paid price".

The alliance was not unexpected. It was obvious to airline analysts that British Airways and American Airlines were under pressure to take action since the Star Alliance driven by Lufthansa and United Airlines has been operating very successfully. It was, however, surprising to see Cathay Pacific joining OneWorld as the Hong Kong airline recently had announced a close partnership with Swissair.

The new air transport giant OneWorld has a combined workforce of 220,000 employees. Last year the OneWorld partners transported 174 million passengers. They serve 632 destinations in 138 countries with a total of 1,524 aircraft. Just as is the case with Star Alliance OneWorld will not see any additional financial link-ups with its members. However, the competitors differ when it comes to the scale of the intended partnership: Code sharing flights are not planned under the existing OneWorld agreement. At the moment only the setting up of co-operative marketing and combining of frequent flyer programs flight programs is at the centre of the joint activities.

The reason for not getting involved in code sharing, which without doubt would make the alliance even stronger, is seen in the non-existence of Open-Sky-agreements between the partner's countries. And neither the British nor the US Authorities have agreed to the BA-AA-alliance that was announced two years ago. In addition, the European Commission in Brussels has refused to give the go-ahead so far.

According to information provided by the "Financial Times" further OneWorld membership negotiations with several carriers are being held behind the scenes. Possible candidates are Finnair, the Spanish Iberia and Japan Airlines.

According to experts the formation of OneWorld in Europe is putting Air France under a lot of pressure as the alliance network of the French is regarded underdeveloped.

From page 38 of FLUG REVUE 11/98