Beijing, China – May 22nd, 2006 –Air China Limited ("Air China") and the Star Alliance, the airline network for Earth™, today signed a Memorandum of Understanding confirming an invitation for Air China to join the alliance.
Commenting on today’s event, Jaan Albrecht, Star Alliance CEO said: "With Air China having chosen to join Star Alliance, we have now taken the decisive step in implementing our strategy for the Chinese market. This decision truly lays the foundation for the future pace in Chinese Aviation."
Attending the event was the Chancellor of the Federal Republic of Germany, Dr. Angela Merkel, who is on her first visit to China; German Federal Minister for Transport, Building and Urban Affairs, Wolfgang Tiefensee; Minister Yang Yuanyuan of the General Administration of Civil Aviation of China.
Mr. Li Jiaxiang, Chairman of China National Aviation Holding Company, Mr. Ma Xulun, President of Air China Limited, Mr. Jaan Albrecht, CEO of Star Alliance and several CEOs of the Star Alliance member carriers were also present at the ceremony together with 150 distinguished guests.
Mr. Li Jiaxiang, Chairman of China National Aviation Holding Company and Chairman of Air China Limited, said in his speech: "With economic globalisation and open skies, the competition in the airline industry will become more and more severe. No one airline can create a global network by itself. In order to survive and develop, airlines have to cooperate with other partners in various forms including multilateral alliance cooperation."
"Cooperation between Air China and Star Alliance will be mutually beneficial. Currently, China is one of the fastest growing civil aviation markets with great potential. Through cooperation with Air China, Star Alliance will connect its international route network with China through Air China’s extensive domestic network and extend its global route network. The travelling public will have access to more convenient services, savings made and efficiency improved," Mr. Li said.
The Star Alliance network recently also extended an invitation to Shanghai Airlines to join the alliance. This dual-hub approach will allow the alliance to offer a unique network from the two most important airports in China.
Once both Air China and Shanghai Airlines will have become full members of the alliance, the Star Alliance network will grow to 20 members, offering more than 16,500 daily fights to 912 destinations in 160 countries
About Air China
After going public in 2004, Air China has rapidly reformed through changed working and management practices. Profitable in 2004 Air China was also made a profit in 2005 with total turnover of 7.44 billion tonne kilometres [ up 10.2% ] Passenger transportation volume increased to 27.695 million [ up 13 percent ] Profit after tax was 2.406 billion RMB [ up 0.85 percent compared with the same period last year ].
Facing new domestic and international competition, Air China set up four strategic objectives: "to be recognised by premium passengers, achieve best profits, to be a valuable airline of China and an airline with global competitive strength."
Air China has a fleet of 176 aircraft, mainly Boeing and Airbus. It operates up to 70 domestic and 36 international destinations in 22 countries and regions. It flies around 4160 flights per week. Through code shares with 18 domestic and international airlines, Air China operates 1210 code share flights.
Benefits of Joining Star Alliance
Facing more and more severe competition after the open skies policy was introduced, Air China decided to join Star Alliance to further expand its route network and enhance international competitiveness.
Joining Star Alliance will enable Air China to accelerate establishment of its Beijing hub and improve flight connections with Star Alliance partners through the hub. Air China will work with the Star Alliance’s strong sales network and its joint purchasing programs. Both will benefit Air China.
Chinese domestic passengers will be able to purchase a ticket flying to any destination operated by any alliance member airline. Members of Star Alliance carrier Frequent Flyer Programs (FFP) will be able to collect and redeem miles, kilometres or points on any member carrier. Star Alliance Gold members received alliance-wide benefits, such as for example dedicated check-in counters and priority wait listing.
Star Alliance customers have access to 660 airport lounges. Check-in, joint ticketing and baggage facilities, collocation and connection teams at key airports all play a role in creating a smoother travel experience. Star Alliance carriers can offer passengers a variety of air passes and special fares including a Round the World Fare, Circle Asia Fare, Circle Pacific Fare and the African, Asian, Brazilian, European, Japan, North American, South Pacific and Thailand Air passes.
Now 52 years old Air China has a strong management. Since going public Air China has undergone internal reform, including changes in its corporate organisation and culture. Taking advantage of the strength of Air China in the domestic market, Star Alliance member airlines will closely connect the alliance’s international network with China, one of the biggest potential markets.
About Star Alliance
Star Alliance is a global airline network which was established by five airlines, Air Canada, Lufthansa, Scandinavian Airlines, THAI and United on May 14, 1997.
Since its formation, the original alliance group has grown to include some of the world’s finest airlines. The current 18 members include Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAP Portugal, THAI, United, US Airways and VARIG. Now Air China Limited and Shanghai Airlines have announced their intention to join the Star Alliance Network.
Members of Star Alliance Frequent Flyer Program (FFP) can collect and redeem miles, kilometres or points on any member carrier. Star Alliance Gold members have access to 660 lounges at airports around the world.
Together, 360,000 employees serve more than 425 million passengers a year. With a modern combined fleet of more than 2800 aircraft, Star Alliance offers 15,500 daily flights to 842 airports in 152 countries.
At present, there are nine member airlines operating to 19 cities in China including Beijing, Shanghai and Guangzhou. Star Alliance has been voted "Best Airline Alliance" by Skytrax in 2003 and 2005.
Cooperation between Air China and existing Star Alliance member carriers:
Air China currently has code-share relationships with the following Star Alliance member carriers: ANA, Asiana Airlines, Austrian, Lufthansa, SAS, United and VARIG.
Cooperation between ANA – Air China
ANA began code-sharing with Air China on flights between Japan and China in March 2004. At the same time, the two airlines also instigated mutual recognition of their Frequent Flyer Programmes. This very successful co-operation agreement soon expanded from 102 weekly jointly operated flights to the present 185. Air China’s decision to join the Star Alliance family is warmly welcomed by ANA, as it will add a new dimension to an already strong relationship, and further cement the partnership between two Asian neighbours
Cooperation between Austrian Airlines – Air China
Austrian Airlines and Air China started their cooperation in form of a code-share/blocked space agreement in January 1996 on the Vienna – Beijing v.v. route. Upon resumption of the Vienna-Shanghai vv. flights in summer 2004, this route was equally included in the cooperation agreement with Air China, thus enabling connections on to the extensive domestic network of Air China within China on one hand and the extensive network of Austrian Airlines via the Vienna hub to Central, Eastern and Western Europe.
Cooperation between Lufthansa – Air China
Code Share Cooperation:Air China and Lufthansa started code share cooperation on Oct 29, 2000. Considerable advancement has been made in that time.
Sino-German Trunk Route Code Sharing:Currently the total code share capacity of Air China and Lufthansa is 49 flights per week of which 18 flights are operated by Air China and 31 flights by Lufthansa.
Domestic points code sharing: Air China has code shares with Lufthansa on nine points in Germany including Frankfurt, Berlin, Munich, Hamburg, Cologne, Düsseldorf, Hanover, Leipzig, Nuremberg, Stuttgart. Third country code sharing points include Sao Paulo in Brazil, Madrid, Barcelona and Bilbao in Spain.
Lufthansa puts its code on Air China’s flights to the following cities in China: Chengdu, Dalian, Guangzhou, Hangzhou, Nanjing, Shenyang, Xiamen and Wenzhou. In April of 2005, Air China started a third country code share with Lufthansa to Sao Paulo in Brazil, Madrid, Barcelona and Bilbao in Spain. At the same day, Air China opened it route from China to Brazil and Spain through code share.
Frequent Flyer Program Co-operation: FFP members of both airlines can collect and redeem miles on any airline’s flight.
Through Check-in: Through Check-in service provides passengers with efficient and convenient transfer.
Product and Service consistency: The consistent product and services provided by both airlines can further improve the passenger service quality and bring passengers with premium services.
About Ameco
Aircraft Maintenance and Engineering Corporation (Ameco Beijing), located at Beijing Capital International Airport, is a joint venture between Air China Limited and Lufthansa. Ameco Beijing was established on August 1st, 1989. It is not only the leading maintenance, repair and overhaul (MRO) provider in China but also the first aircraft maintenance and engineering company in China with certificates from FAA, EASA, CAAC and 12 other airworthiness authorities. Ameco has the ability to provide domestic and international customers with Boeing and Airbus aircraft line maintenance, overhaul and engine overhaul services.
Cooperation between United – Air China
Having started service to China in 1986, United Airlines was the first U.S. carrier to launch non-stop services between China and the U.S. United Airlines is currently the largest carrier between China and the U.S. 2006 will be the 20th anniversary of United Airlines serving China.
In 2003, United entered into a commercial partnership with Air China that includes codesharing, frequent-flyer benefits and access to airport lounges. Together, the two carriers offer code-share flights across the Pacific and within China. Last year, they expanded the agreement to include cargo.
United doubled the number of flights in 2004 and today operates more non-stop services from Beijing and Shanghai than any other airline. The airline’s four daily non-stop flights connect Beijing and Shanghai to Chicago and San Francisco. United also has a sales office in Guangzhou.
In August 2005, United signed a five year agreement with Aircraft Maintenance and Engineering Corporation (Ameco) to conduct airframe heavy maintenance for United’s B777 fleet. United will also carry out specialized maintenance work for Air China’s aircraft at its maintenance base in San Francisco. Air China and other PRC airlines remain United’s largest maintenance customers in the Asia-Pacific region.
In January 2006, United Services Flight Training, a division of United Airlines, announced that it was the first training provider outside of China to be certified under Civil Aviation Administration of China (CAAC) new approval process to train PRC airline pilots.
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Thanks for pisture from an Ameco staff Icecold~