South African Airways Seeks To Join Star Alliance

TravelDude

Advanced
Nov 21, 2003
205
0
South African Airways Seeks To Join Star Alliance
Thursday, March 4, 2004 10:14 AM ET

FRANKFURT -(Dow Jones)- South African Airways said Thursday that it has applied to join the Star Alliance network of 15 airlines.

Star Alliance members not only share routes and frequent flier miles but have also recently banded together to save costs on new planes, fuel and an information technology platform.

SAA President and Chief Executive Andre Viljoen said entry into the alliance would strengthen the airline's global position and provide "substantial" additional revenue in dollars.

Airline alliances have been gaining importance of late as a way to gain the cost-saving benefits of a merger without the risks and regulatory hurdles.

German flag carrier Deutsche Lufthansa AG, one of the founding members of Star Alliance along with UAL Corp. (UALAQ, news)'s (UALAQ, news) United Airlines (UALAQ, news) and Air Canada (ACNAQ, news), said Thursday that it is sponsoring SAA's application and will recommend that the airline be "speedily admitted."

Other Star Alliance members include Air New Zealand, ANA, Asiana Airlines (020560.KQ) Austrian Airlines, bmi, LOT Polish Airlines, Mexicana, Scandinavian Airlines, Singapore Airlines (S55.SG), Spanair, Thai Airways International and Varig S/A (VAGV4.BR).

SAA said the network would give its customers access to 700 airports in 128 countries among other perks, such as access to more than 550 lounges and frequent-flier miles on any member airline.

SAA said once it joined the alliance, it would gradually do away with its independent partnerships with other airlines, such as Air France (3112.FR), Delta (DAL, news), Cathay Pacific (0293.HK), El Al, Qantas and Emirates Airlines .

Company Web site: http://www.flysaa.com

-By Susanna Ray, Dow Jones Newswires; +49 69 29725 500; Susanna.Ray@ dowjones.com
 
Besides LH do any other members of Star currently fly to the continent of Africa?
 
TravelDude,
Singapore flies to Cairo, Jo-Burg and Mautirius, Indian Ocean, off Africa. Austrian flies to Cairo.
 
TravelDude said:
Besides LH do any other members of Star currently fly to the continent of Africa?
I checked out some other carriers from The Star Alliane Webpage and it looks like Spanair serves Malabo, Equitorial Guinea and thats it. Even Varig comes back as an opertated by from Sao Paulo (probably SAA). Looks like a good addition to the Star network.

Edited- I stand corrected. Not many of the carriers make it easy to see where they fly with a detailed route map.
 
Fly said:
I thought that US Air was joining the Star Alliance. Was that scrapped?
They were approved last May. It would take 9-12 months for them to become part of the *A.

But, how does this matter? they don't fly to Africa...
 
In a way I'm surprised that SAA would join and not Skyteam or ONEWORLD. With ONEWORLD it flies to Sydney with Qantas and Cathay to HKG plus it could dominate LHR with BA. With Skyteam it flies to the USA and it could have to Paris with AF. Skyteam with KLM( & its Kenya Airways) and AF in Francophone Africa would give SAA almost total domination in Africa.

Given Star's hubs in Asia and America I see a huge realignment of SAA routes. With SIA in Asia SAA will fly again to Singapore and maybe Bangkok, something to Japan with ANA could happen.

In the USA I see SAA flying to New York, as it always has, but then Atlanta doesn't really make sense. If Delta is not feeding you in Atlanta why would you fly there? USairways hub in Charlotte might work to replace ATL in the South and PHL is too close to New York, UAL at IAD is interesting but not far enough from New York. Miami, once served by SAA before it moved to ATL, could work. USairways or UA don't have big operations there but it could be flown nonstop both ways from Capetown. In the south, I just don't see anything other then MIA working if ATL is not the gateway. Now with UA, ORD enters the equation with some interesting posibilites. SAA service to ORD could happen. SAA service to ATL, it days seem numbered.
 
IMHO, SAA will continue flying to JFK because of the local New York traffic base. I could also see them returning to MIA, perhaps thrice weekly, due to the relatively large South African population living there (at least according to MAH4546). But for connections to UA (and even some to AC), SAA will almost certainly fly to IAD. This also takes advantage of Washington's decent-sized local market to Africa, which IIRC is substantially bigger than those of PHL and CLT, and it might even be larger than ORD's. And I don't believe that the proximity of JFK and IAD (about 230 miles) is an issue since SAA would be using the two airports for largely different purposes.
 
Fly said:
I thought that US Air was joining the Star Alliance. Was that scrapped?
No, US is still joining. We started Star training this week. If you are questioning it because US isnt on the Star Alliance website, we're not actually a member yet, therefore not on the website. Also Mexicana will be dropped about the same time US enters.
We were told MX flunked two tests from Star in a row and that is why they were asked to leave, but the trainer wouldnt say just what kind of tests they were.

And, we still dont fly to Africa. :p But could beef up MIA/FLL (didnt SAA fly into FLL at one time?) with connections if the ATL flight were moved.
 
tadjr Posted on Mar 4 2004, 03:34 PM
QUOTE (Fly @ Mar 4 2004, 05:32 PM)
I thought that US Air was joining the Star Alliance. Was that scrapped?


No, US is still joining. We started Star training this week. If you are questioning it because US isnt on the Star Alliance website, we're not actually a member yet, therefore not on the website


Wow....I thought you all had joined months ago (onboard we mention you as our "Star Alliance partners") Glad to hear that the training is beginning!
 
DLH and SAA had a joint venture and Code sharing in place for the last 12 - 15 years. SAA's main partner in Europe is DLH. It was only a matter of time to get them into Star. SAA had an agreement in the US with AA and then DL. Both of them would not commit any further to SAA as long as they had close ties with DLH. At the end the long relationship to DLH was stronger than any of AA or DL.

It will also give UA a boost in travel routs to Africa. SAA has one of the best networks in Africa and going directly from the US to JNB or CPT will cut out 8 - 10 hours of a trip for any Star member. UA will be the only US Carrier to have direct and nonstop filghts (Code Shared or own) to all continents and more countries than any other of the legacy airlines.

Joining Star will also open several Gateways for SAA. DIA will become an alternative not to forgett that they could reach ORD and LAX using A340's.

And for US joining Star. They have no other alternative in order to stay in the game. DL/CO/NW are forming a pact, AA and AS are joint at the hip. That leaves US, UA as the last legacy airlines to stand alone. Who knows what HP will do? I believe that in the future we will see three Mega Carriers (not any differant than in the automobile business) that will have several brand names. Star = United, US Air and Ted, One World = American and Alaska, and Sky Team = Delta, Continental, Northwest.
 
I think that UA would be wise to launch a non-stop between Dulles and Johanseburg. It would allow for both airlines to feed each other, would open up new markets from Washington for United, and would give United braging rights as the only US air carrier that reaches all 6 inhabitied continents.

Now if only United would give Houston the morning flight to Dulles, life would be oh so grand. What is up with UA not serving the nations 4th largest city from one of it's hubs (and while your at it the return of the old LAX nonstop would also be nice).
 
Fly said:
tadjr Posted on Mar 4 2004, 03:34 PM
QUOTE (Fly @ Mar 4 2004, 05:32 PM)
I thought that US Air was joining the Star Alliance. Was that scrapped?


No, US is still joining. We started Star training this week. If you are questioning it because US isnt on the Star Alliance website, we're not actually a member yet, therefore not on the website


Wow....I thought you all had joined months ago (onboard we mention you as our "Star Alliance partners") Glad to hear that the training is beginning!
We are currently a marketing partner.
We announce boarding for flight 200 to Philadelphia operated in cooperation with our Marketing Partner United Airlines as flight 2619.
Star starts for US in April or May.
 
The ideal situation would be for UA to fly nonstop from IAD to CPT/JNB and for SAA to fly to JFK and Miami. ATL won't work as a Star Alliance destination for SAA so it will change. With the new generation A340-500/600 and 777LR nonstop both ways from South Africa to the USA should finally become reality. One decision I question about SAA is why the ordered A340-600 and A340-300E and no A340-500, this version flies further then any other A340; just witness SIA frin Singapore to LAX nonstop on A345.