SAA Won't Have to Ditch Partners

Business Day (Johannesburg)

July 16, 2004
Posted to the web July 16, 2004

Khulu Phasiwe , Public Policy Correspondent
Johannesburg

SOUTH African Airways (SAA) will not have to end its partnerships with other airlines as part of conditions for its Star Alliance membership, it emerged yesterday.

This should go a long way towards dispelling market fears that SAA was planning to ditch its longtime code-sharing partners such as British Airways, Cathay Pacific, Qantas and Air France.

SAA did not belong to any alliance before its membership was accepted by the Frankfurt-based Star Alliance.

Star Alliance is the largest global airline network. It provides daily flight connections to 755 airports in 132 countries.

Subject to Competition Commission approval, the national carrier will become the first African airline to join the 15-member group.

SAA and TAP Air Portugal are expected to become full members by the end of next year.

Network alliances are important to airlines as they help to increase passenger loads and revenue through code-sharing agreements and joint-venture operations.

The partnerships also increase the airlines' buying power and ensure cost saving through joint purchasing of parts and software .

Customers also stand to benefit from seamless connections and frequent flyer rewards which can be earned from or redeemed through any of the member airlines.

Chris Klick, Star Alliance's vicepresident for corporate affairs, said yesterday that although the organisation would prefer collaboration among member airlines, it would not demand that new alliance members relinquish deals with other airlines.

"We are striving for a win-win situation. A decision to join (or relinquish certain partnerships) should not hurt the bottom line," said Klick.

Star Alliance's six-member team was in SA to start the process of integrating SAA into the alliance, Klick said. The integration would include harmonising the ticket booking systems and frequent flyer programmes.

SAA spokesman Onkgopotse Tabane said the airline would communicate with its current code-sharing partners about which ones it was planning to cut ties with.

He said a decision would be made in the next 18 months.

In the interim, SAA would consult its nonaviation partners such as tourism authorities about which new routes to add or cancel, Tabane said.


He said that SAA was confident that the Competition Commission would approve its membership of the Star Alliance.

Competition Commission spokeswoman Zodwa Ntuli said it had yet to receive SAA's application. "Nothing has been forwarded by SAA to us. Perhaps they are still going to send their application, but at the moment we do not have it on our register."

Good.....I think, is Delta included?

United is also in the star alliance. WooHoo!

Fjold, Ive been watching your video for 10 minutes>>>