Star Alliance, the world's largest grouping of airlines, said it aims to add two new members from China this year to expand its network.
The alliance, which includes Deutsche Lufthansa AG and Singapore Airlines Ltd., is talking to Air China Ltd., China Eastern Airlines Corp. and Shanghai Airlines Co., Star Alliance Chief Executive Officer Jaan Albrecht told reporters in Johannesburg today. An announcement is due in a few weeks, he said.
``Our strategy is to pursue two carriers because of the size of the market,'' Albrecht said. ``We believe they are about to be ready to make a decision.''
Star Alliance estimates that its market share totals more than 30 percent of the world's traffic after the group added Swiss International Air Lines Ltd. last week and South African Airways today, for a total of 18 carriers. Alliances help airlines boost sales by feeding passengers onto each other's networks and cut costs by making joint purchases and using common ground facilities.
Shanghai Airlines, China's fifth-largest carrier by fleet size, is not talking to any other groups of carriers except Star Alliance, Company Secretary Xu Junmin said today in a telephone interview from Shanghai. He declined to say when the airline may join Star Alliance.
China Southern, the country's second largest airline, signed an agreement in August 2004 to join the SkyTeam alliance, which includes Northwest Airlines Corp. and Air France-KLM Group, and may become a member next year. Air China, the nation's biggest carrier, has not made a decision on membership in an alliance, it said Jan. 17. The airline is 10 percent-owned by Hong Kong's Cathay Pacific Airways Ltd., a member of the Oneworld alliance. The Beijing-based airline and Cathay Pacific sell tickets on each other's flights between Hong Kong and the Chinese capital. The SkyTeam alliance has 22 percent of the world's passenger traffic, according to Star Alliance estimates, while Oneworld, which includes British Airways Plc, has 18 percent. Star Alliance also aims to add members in India and Russia.
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