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Cathay ponders joining global airline alliance

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Mark Sharp

CATHAY Pacific Airways is considering joining forces with some of the world's largest air carriers in the Star Alliance, the biggest international airline grouping, as the Hong Kong firm faces its toughest year.

Cathay Pacific spokesman Kwan Chuk-fai said the airline had been in talks with Star Alliance members, as well as other independent airlines, with a view to forming strategic partnerships. But no decision had yet been taken.

'We have an open mind about various options and the Star Alliance is one of them,' Mr Kwan said. 'We have been talking to many carriers and we don't have any decision at the moment. We always keep our options open.' Mr Kwan's comments followed a recent meeting of the six-member Star Alliance in Bangkok, after which it was announced that a new member, preferably an Asian airline, was being sought.

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Star Alliance groups Thai Airways International, Lufthansa, United Airlines, Scandinavian Airline Systems (SAS), Air Canada and Varig of Brazil.

A decision on the new member will be taken at the next meeting, between May 13 and May 15 in Copenhagen.

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United Airlines president John Edwardson said the new member probably would be from Asia as the region still had growth potential.

The alliance, part of a growing trend, aims to make joint use of facilities and services. It includes code-sharing arrangements and shared air-miles programmes as well as mutual use of other facilities.

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