Archive for the 'Star Alliance' Category

ANA, Continental, and United Seek Anti-Trust Immunity

Published
by
Dan Webb
on December 24, 2009
in ANA, Continental, Star Alliance and United
. 0 Comments

The Japanese government has said that  both ANA and JAL need to enter immunized agreements with their partners in the United States. So, not surprisingly, ANA, Continental, and United have submitted their application for anti-trust immunity to the Department of Transportation. The three carriers said in a joint news release that immunity would allow them “to create a more efficient and comprehensive trans-Pacific network, generating substantial service and pricing benefits for consumers.”

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In the DOT application, the airlines said the deal will “expand consumer choice and enhance competition in the global marketplace” because it will “improve Joint Applicants’ ability – and the ability of the Star Alliance – to compete effectively with the SkyTeam and oneworld alliances.” They also said that the deal “will not substantially lessen” competition on service between the United States an Asia.

Interestingly, the airlines “evaluated the feasibility of including Air Canada in the Pacific JV, but decided that the additional complexities involved, including restrictions under the Canada-Japan bilateral agreement, would preclude implementation of the JV.”

United already has immunized relationships with carriers in the Pacifc region – Air New Zealand and Seoul-based Asiana.

Assuming this deal goes through, Star is in great shape when it comes to the Asian market – so the big question is what happens to the other two alliances. Will JAL stay with oneworld or hop over to SkyTeam? That question is a huge issue for American and Delta. Personally, I think that American/oneworld has a lot to lose here, while Delta/SkyTeam would be successful either way.

American’s share (as measured by nonstop seats) in the United States-Asia market is a measly 4.5% and and is 12.5% for the mainland U.S.-Japan Market (JAL has 11.5% and 13.4%, respectively). Meanwhile, Delta’s market share in those markets is 15.0% and 30.9%, respectively. The Narita hub acquired from Northwest helps them as well. Basically, American really needs JAL to help stay competitive, though it would still have an Asian partner in Cathay Pacific. (Those numbers are from the Star filing.)

The application is 203 pages long. I know what I’ll be reading this weekend. :)

Anyway, I won’t be posting tomorrow as I’ll be taking Christmas off. I will be writing my usual weekend posts, though. Next week, make sure to come visit and read my review of Up in the Air and why I no longer like Al Roker! :D

Why Star Might Become A Much Larger Player in Latin America

Published
by
Dan Webb
on October 13, 2009
in Star Alliance
. 0 Comments

The Star Alliance’s presence in Latin America has varied over the years. Mexicana was a member, but left in 2004, and is now joining Oneworld. Varig also participated until 2007 when it hit some financial turbulence, leaving Star weak in the region and Oneworld and SkyTeam with a bigger presence with members LAN and AeroMexico, respectively.

But, thanks to some recent moves, Star can become a bigger player in the market.

The only thing for certain right now is that the Brazilian carrier TAM will join the alliance in April of next year. But some other deals have even more potential.

The first is Panama-based Copa. Not surprisingly, there are leaving SkyTeam along with Continental, but there hasn’t been anything certain about them joining Star. But if they did, they would also bring along the Colombian airline AeroRepública.

Last week it was announced that TACA and Avianca are to merge. The two brands will continue to exist (for now). TACA has expressed interest in joining Star Alliance in the past, but there’s no word if the merger affects its plans at all. But, if Star Alliance can get both carriers to hop onboard, it would finally make them a strong competitor in a current area of weakness.

More Thoughts on the JetBLue/Lufthansa Codeshare

Published
by
Dan Webb
on September 1, 2009
in JetBlue, Lufthansa and Star Alliance
. 1 Comment

The proposed codeshare agreement between JetBlue and Lufthansa, while not entirely surprising, is certainly a very interesting story, and after looking to it more there are a few things to look at. The airlines, according to a DOT filing, “plan to initiate the proposed code-share services on the routes listed in Exhibit 1 on or about October 8, 2009.”

First, the routes. There will be transfers going on at both Boston and New York (JFK).

From Boston:

  • Tampa (TPA)
  • Ft. Myers (RSW)
  • San Juan (SJU)
  • West Palm Beach, (PBI)
  • Buffalo (BUF)

From New York:

  • Ft. Lauderdale (FLL)
  • Tampa (TPA)
  • New Orleans (MSY)
  • Austin (AUS)
  • Raleigh/Durham (RDU)
  • San Juan (SJU)
  • Pittsburgh (PIT)
  • Buffalo (BUF)
  • Syracuse (SYR)
  • Rochester (ROC)

It should be noted that Continental has service to all of these cities, and United serves all of them except West Palm Beach and Fort Lauderdale.

Next, as I mentioned earlier, what do Lufthansa’s Star partners think? Surely Continental and United aren’t exactly pleased at the loss of potential passengers going to their domestic routes from Lufthansa flights. This issue certainly gets messier as Continental, Lufthansa, and United are part of the “Atlantic Plus-Plus” venture, part of which includes revenue sharing on transatlantic routes. (Air Canada is a member as well, and US Airways does not have anti-trust immunity with its fellow Star carriers.)

Continental and United did not respond to requests for comment on this issue.

Also – what does Delta think about this? A news report mentioned that Delta complained about Lufthansa’s investment in JetBlue a few months ago. I found the filing, which was concerning Continental’s application to join Star. Delta wrote:

JetBlue and Continental both have substantial operations in New York and compete on 38 nonstop routes. The potential for competitive mischief (whether intentional or unintentional) in a situation in which Lufthansa has access to the competitively sensitive information of United and Continental, as well as JetBlue, is a circumstance that was not foreseen or reviewed in connection with the previously-approved JetBlue investment transaction.

Has Delta’s opinion changed at all? Probably not. Delta did not reply to a request for comment. American and oneworld probably aren’t the most pleased, either.

Anyway, this is a big step for JetBlue, but I think if the DOT approves the codeshare application, this could provide many benefits for the airline.

JetBlue and Lufthansa Plan to Codeshare

Published
by
Dan Webb
on August 30, 2009
in Continental, JetBlue, Lufthansa, Star Alliance and United
. 0 Comments

The Financial Times reports this evening:

Lufthansa plans to seek regulatory approval to form a “code-share” agreement with JetBlue Airways, marking the German airline’s latest effort to forge closer ties to the US carrier and its coveted New York hub.

I can’t say the news is entirely shocking, especially since Lufthansa has acquired a significant portion of JetBlue shares – the carrier currently owns 19% of JetBlue, though if Lufthansa wanted to increase its stake it would be limited  by foreign ownership rules.

If this codeshare deal happens, it would be a big step for JetBlue. Currently, the airline only has an international partnership (not a codeshare) with Aer Lingus.

The biggest issue here, I think, is Continental. (I am a bit surprised that the Financial Times report didn’t mention them.) One of the reasons Continental is such a good fit for Star Alliance is that the group is very weak in New York – the best it has is US Airways’ domestic hub at LaGuardia, and if the slot swap with Delta goes through that goes away. Continental’s Newark hub gives Star a wide range of domestic, and more importantly, international flights out of the city.

Granted, Lufthansa has a greater presence at JFK than it does at EWR at the moment, but I’m sure Continental was at least hoping that it would get some connecting passengers from Lufthansa to hop on to domestic flights from EWR, not go to JetBlue’s network out of JFK.

It should also be noted, though the article rightly focuses on JFK, there would probably be some opportunities out of JetBlue’s Boston operation as well.

On another note, does this have the potential to mix up the relationship with United? Is there any chance that this could bring away some passengers who connect in IAD up to JFK? Or am I now just making random guesses? :D

And to take it even further – might we see Star Alliance stickers on JetBlue aircraft? Unlikely in the near-term, but who knows, maybe one day? (Taking it too far here? :D )

Regardless, interesting move here. Looking forward to seeing what happens.

Continental Gets Tenative Approval to Join Star

Published
by
Dan Webb
on April 8, 2009
in Continental and Star Alliance
. 5 Comments

Well, the title of the post pretty much says it all – Continental can join star with anti-trust immunity. I’m glad the DOT got this through before any potential protectionist language in the FAA Reauthorization bill comes through. The big quesiton in my mind is what will now happen with Oneworld’s attempt to get anti-trust immunity.

Here’s the part of the news release that confused me:

In addition to Continental and United, the eight Star Alliance members receiving tentative DOT approval for antitrust immunity are Air Canada, Austrian, bmi, Lufthansa, LOT Polish Airlines, Scandinavian Airlines (SAS), SWISS and TAP Air Portugal.

Does anyone know why US Airways wasn’t a part of this? I honestly have no idea. Please hit up the comments. :D

Star Alliance…Up to 50 Carriers?

Published
by
Dan Webb
on December 12, 2008
in Star Alliance
. 0 Comments

Via ATW:

“We are now working on a new concept that we can see up to 50 member carriers in the future. That could mean maybe 30 or 40 or even more carriers.” (Said by Star CEO Jaan Albrecht)

Albrecht said it is talking to “several carriers” regarding future membership, especially in Africa and Latin America. “But we don’t need a hub in the desert. We are not talking to Middle East carriers about joining Star,” he said.

I can’t say I was really expecting to read this. 50 members? I think Star still has room for growth, but I’m not sure if it has that much.

I certainly agree that Star can grow in Africa and especially Latin America, but I really don’t understand why Star wouldn’t want to try tapping the Middle East market a bit more. And plus, doesn’t EgyptAir count as a Middle Eastern carrier? (Unless if Star considers them African)

TAM fills Varig’s Gap in Star

Published
by
Dan Webb
on October 8, 2008
in Star Alliance
. 0 Comments

Remember Varig’s financial troubles a couple of years ago? Well, those resulted in Star Alliance suspending the ariline’s membership in late 2006, and Varig formally left the alliance in early 2007. That was a problem – it left a huge gap in Star’s network by leaving it with no South American carrier. Now, it was announced yesterday that TAM will be joining the alliance, remedying that issue. To quote the press release:

“Thanks to TAM, Latin America will no longer be a white spot but rather a hot spot on our world map,” said Jaan Albrecht, CEO of the organization, during the official announcement today.

For those of you keeping score, SkyTeam doesn’t have a South American carrier, but does have AeroMexico and Copa (though I think Copa might move to Star with Continental…anyone know?). Meanwhile, Oneworld has LAN as one of its members.

Hmmm…maybe TAM’s move to Star will give Ben some good oppurtunities to redeem rewards? :D

Alliance Liveries

Published
by
Dan Webb
on August 14, 2008
in Oneworld, Random, Skyteam and Star Alliance
. 2 Comments

I decided to talk about something lighter today. I absolutely love talking about aircraft liveries sometimes. I think it comes from my interest in Microsoft Flight Simulator, especially the AI Traffic that flies around in the game that users can modify, which essentially allows a user to go spotting anywhere in the world! A lot of simmers try to make their traffic as detailed as possible, which means including a load of special aircraft liveries. Anyway, back on topic. I can talk about FS for way too long… I received a press release from oneworld in my inbox yesterday Continue reading ‘Alliance Liveries’

Farnborough News; Egyptair Joins Star Alliance

Published
by
Dan Webb
on July 15, 2008
in Airbus, Boeing, EgyptAir, Farnborough and Star Alliance
. 0 Comments

This week will certainly be busy in terms of posts. First, the Farnborough International Airshow is going this week. The manufacturers could be making big announcements, and the airlines might be making some big orders. In addition, earnings season is in full swing and the airlines will be starting tomororw as both American and Delta will be releasing their results and having their quarterly conference calls.

But on to the news… Continue reading ‘Farnborough News; Egyptair Joins Star Alliance’

Another Quick Thought on Continental And Star

Published
by
Dan Webb
on June 29, 2008
in Continental, JetBlue, Lufthansa and Star Alliance
. 1 Comment

Ok, I’m back from a great vacation, and I’m working on a trip report now. I have one more thought, though, on Continental’s intent to join the Star Alliance, and I’m not sure if anyone else has pointed it out. Last week I mentioned that Continental’s hub in Newark is good for the Star Alliance.

Remember when Lufthansa bought 19% of JetBlue? Many started to wonder what Lufthansa planned to do, and if a partnership would emerge. At that time, a partner at JFK was very attractive to the airline. I wonder if Contienental’s intention to move into Star changes any plans.

Continental Wants United Codeshare and Star Alliance Membership

Published
by
Dan Webb
on June 20, 2008
in Continental, Skyteam, Star Alliance and United
. 4 Comments

Greetings from sunny overcast and warm Fort Lauderdale! The flight was very good and I’ll share my thoughts on Southwest and their recent changes (I haven’t flown them in a year) when I get back.

Well this has been rumored ever since Continental turned down a merger with United, and it has finally happened. Continental will be launching a codeshare program with United, though the airlines will cooperate in many ways other than a simple codeshare, as the press release says. More importantly (I think), Continental wants to join the Star Alliance.

Honestly this move isn’t too shocking because of events going on in Skyteam. With the Northwest-Delta merger and their partnership with Air France and KLM, Continental probably felt a bit left out.

Continue reading ‘Continental Wants United Codeshare and Star Alliance Membership’