Agreement with rival Star Alliance likely to be scrapped in share swap changes
The oneworld alliance, whose membership now looks likely to include Air China, generated sales of more than US$1.8 billion from interlining agreements last year as members took greater advantage of feeding passengers into each other's route networks.
Air China last month signed a memorandum of understanding (MOU) with the rival Star Alliance. But with trading suspended yesterday pending an announcement of a share swap with Cathay Pacific Airways, the provisional deal is now likely to be rescinded in favour of a oneworld membership.
Senior oneworld executives did not rule out such a move yesterday in Paris.
'We feel under no pressure in terms of time to sign a mainland carrier. It is as much finding a match for us as it is finding a carrier in the region,' John McCulloch, a managing partner in oneworld said before trading was suspended yesterday. 'You will see a lot more happen yet before it is all settled. I would be surprised if the [Air China] MOU was rescinded in any way. But stranger things have happened.'
The alliance said it would like to see its interlining revenue, which rose 10.7 per cent year on year, grow 20 to 30 per cent a year until the end of the decade.