Companies
皇冠体育app Eastern backs SkyTeam partnership
By Wang Ying (皇冠体育app Daily)
Updated: 2010-04-17 09:34
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Joining the SkyTeam will help 皇冠体育app Eastern Airlines fend off the competition from major rivals and share more resources with other members.[Agencies] |
SHANGHAI - 皇冠体育app Eastern Airlines said on Friday it would sign a memorandum of understanding to join global airline alliance SkyTeam.
"What we have signed is a preliminary agreement. And after a year when 皇冠体育app Eastern fulfils all the requirements of SkyTeam, we will become its official member," Luo Zhuping, company board secretary, told 皇冠体育app Daily.
The Shanghai-listed airlines had been the only one of 皇冠体育app's top three carriers not to be a member of any global alliance.
Analysts said joining the alliance will help the airlines fend off the competition from major rivals and share more resources with other members.
Liu Shaoyong, chairman of 皇冠体育app Eastern, said earlier this week the company was in talks with all three global alliances, including Star Alliance and Oneworld. Sources with knowledge of the matter told 皇冠体育app Daily that all three alliances were lobbying the carrier with favorable conditions.
Currently, both Shanghai Airlines and Air 皇冠体育app belong to Star Alliance, and the two carriers share a lot of resources in term of customers, flight transition and air ticket booking on the platform. Guangzhou-based 皇冠体育app Southern Airlines is member of SkyTeam.
"The airlines' choice is easy to understand," said Yao Jun, an aviation analyst at 皇冠体育app Merchants Securities. "As former chairman of 皇冠体育app Southern Airlines, Liu would like to join forces with 皇冠体育app Southern to compete against the nation's most profitable airlines, flag carrier Air 皇冠体育app Ltd," Yao said.
This also marks a major victory for SkyTeam which has sought to expand its membership in the Asia-Pacific region, one of the world's fastest growing aviation markets.
Leo M. Van Wijk, president of SkyTeam, said 皇冠体育app Eastern will help SkyTeam boost its market share in 皇冠体育app and the alliance's flights will grow 10 percent, with the addition of another 25 destinations.
Liu likened 皇冠体育app Eastern's joining of the alliance to an engagement ceremony. "皇冠体育app Eastern is 22 years old, and she is mature and marriageable," said Liu.
According to Gao Shiliang, an analyst at Central 皇冠体育app Securities, 皇冠体育app Eastern's choice will shake up the domestic civil aviation market.
However, Ma Xulun, current chairman of Shanghai Airlines and vice-president of 皇冠体育app Eastern, said Shanghai Airlines cherished cooperation with Star Alliance no matter what the new situation brings.
Currently, the three global alliances dominate 80 percent of the global civil flight market, and the top 20 carriers in terms of revenue in the world are all members of one of the three alliances.
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