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South African Airways Seeks To Join Star Alliance

Thursday March 4, 10:59 PM
South African Airways Seeks To Join Star Alliance
FRANKFURT (Dow Jones)--South African Airways (SAA.YY) 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 (LHA.XE), one of the founding members of Star Alliance along with UAL Corp.'s (UALAQ) United Airlines and Air Canada (ACNAQ), 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 (AIR.NZ), ANA, Asiana Airlines (020560.KQ) Austrian Airlines (AUA.VI), bmi (BMID.YY), LOT Polish Airlines, Mexicana, Scandinavian Airlines (SAS.SK), Singapore Airlines (S55.SG), Spanair, Thai Airways International (THAI.TH) 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), Cathay Pacific (0293.HK), El Al (ELAL.TV), Qantas (QAN.AU) and Emirates Airlines (EA.YY).

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As soon as I receive additional information I will post it regarding miles
and co-share.

Kathi

kathi@wldtravel.com