Tuesday, November 24, 2015

Star Alliance Not Interested in Philippine Airlines

As Philippine Airlines begins to search for a strategic airline partner, that could help pave its entry into a global airline alliance, the national flag carrier was dealt a major blow after Star Alliance, the world's largest alliance of airlines, stated that it has no current interest in Philippine Airlines.

star alliance
Image Source: Star Alliance
According to Star Alliance's Chief Operating Officer Jeffrey Goh, the global alliance has no immediate need for Philippine Airlines. "There is no immediate need to be focusing on recruiting a member from the Philippines. I would not say that we see Philippine AIrlines as a prospective new member." said Goh. "Clearly, if you just think about the network of Philippine Airlines today, they have overlapping services with some of our members."

Goh added that Star Alliance remains committed to protecting the interests of its current 28 member airlines and before any new entrants are accepted, it is important to ensure that new carriers will not compromise the interests of existing members. 

"We have hopeful members knocking on our doors and our analysis has to make sure that it is positive for all our current members," said Goh. "If we brought in a carrier that has a network that overlaps substantially with the current Star Alliance network, then we have to ask ourselves is there value in adding that airline as a new member? What destinations do we add? How many frequent fliers do we add?" Goh added that the addition of a new member carrier must bring positive opportunities for the members of the alliance either through network expansion or additional frequent fliers.

However, despite the Star Alliance's lack of interest in adding a Philippine carrier to its global portfolio, it does see an opportunity to expand its network in the Philippines through budget carriers. "Our members are constantly looking at ways to expand the network whenever that is possible. The Philippines has shown that there is a market here especially in the budget air sector," added Goh. "Of course, Manila isn't the center of the earth, but there is an opportunity for the network to grow."

Star Alliance is aware that it may have to rely on low-cost carriers to further penetrate the Philippines. There are no existing member budget airlines in Star Alliance, which is driven by its extensive network coverage carried by legacy airlines. 

However, Goh indicated that the alliance is planning to connect with low-cost carriers in Brazil and India under its "connecting partner model." This unique model assists the alliance in boosting coverage in large markets, where existing members do not operate.

Member carriers of Star Alliance enjoy benefits such as additional revenue generation, cost reductions, as well as collaborative fleet coordination, information technology, and fuel projects. Passengers that are frequent flyers with Star Alliance carriers enjoy priority check-in, priority baggage handling, priority boarding, and airport lounge access among other benefits.

Star Alliance currently operates to more than 13,000 airports spread across 192 countries. Of the 28 member carriers of Star Alliance, nine currently serve the Philippines including: Air China, ANA, Asiana, Ethiopian Airlines, EVA Air, Singapore Airlines, Thai Airways International, Turkish Airlines, and United Airlines.


24 comments :

  1. Does anyone have any knowledge about the Oneworld Alliance and Philippine Airlines? Would their thinking be the same as Star? It would be great for PAL if it could join Oneworld.

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  2. Cathay Pacific is a member of Oneworld Alliance and all network of PAL are covered by CX except domestic network. So there are No value to add PAL in Oneworld. Better to join Etihad Alliance through equity, it make sense and benefits to both carrier since they will cover East to West Network via AUH. Considering the limitations of PAL to reach Europe & Africa.

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  3. the only "viable" option for PAL is Sky Team, OneWorld is redundant because like stated in previous comments, the close proximity of Hong Kong/CX makes all the international routes pointless because we would be simply shadowing CX routes because PAL flies to every destination CX does except in Europe.
    Sky Team "feels right" because the nearest Sky Team member in SEA to the PH is Garuda Indonesia, so adding the Philippines as a port would be viable.

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    1. Seems like a good option, Jelo. Additionally, out of SkyTeam's 20 members, 5 of its members are already flying to and from Manila: Korean Air, China Airlines, Delta, Saudia and Vietnam Airlines.

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    2. Vietnam airlines does not serve manila

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    3. You have missed mentioning China Eastern and China Southern allied with Sky Team. These are airlines starting to challenge the others that serve Asia, Africa, Europe, North and South America and Australia, of course!

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  4. Infrastructure will be added in the woo of PAL. Every Alliances required same terminal usage (at least) of all its member airlines to benefit the same lounge and cost effective for them. But NAIA-T2 has no capability to built bigger lounge and accept all alliance airlines into NAIA-T2. Either of the 3 major Alliance will accept this kind of congestions because PAL alone felt that T2 are really small airport similar to regional airport. It seems no obvious solution for this except to approve the SMC proposal of building new world class airport along Coastal Road in Manila Bay. But even this proposal pushed through, it will take another 10 years to materialize this New World Class Airport considering all the hurdles that every government projects are facing right now.

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  5. There will be a conflict w/ Cathay Pacific.

    I guess the Skyteam is there only chance.

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  6. Star Alliance has a valid point. It just seems that PAL has nothing good to offer to any of the 3 major airline alliances at this point.There aren't any special routes that can be taken advantage of.
    They should pursue One World next as American Airlines is one of its founding members and it doesn't currently fly to and from Manila. By doing so, they could penetrate and AA could potentially open a gateway to its major hubs in DFW, Miami and O'Hare International Airport (Chicago).

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    1. CX would block PAL's entry. Besides CX is the biggest international carrier in the country. Way ahead of PAL. PAL just needs to add tie ups with other airlines. No alliance needed.

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  7. CEBU PACIFIC could be part of Star Alliance

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    1. ... I don't think so. Star Alliance is not only looking into extending their coverage area, members have to be or provide a certain quality ... Cebu Pacific in its current status will never make it into this group

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    2. He already said that no LCCs are allowed to join the alliance todate except airlines from big, thickly populated markets like Brazil and India. Read the article again!

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  8. PAL should have joined one of the big three airline alliance long time ago.

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  9. Nobody will invite PAL as: 1st Their onboard amenities are not world class. 2nd NAIA is also not world class. 3rd No Premium Passengers that can be attracted.

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    1. And Ehtiopian Air is? Im flying Ethiopian, and its Airport so goddamn disgusting. And yet they are a member of Star Alliance.

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  10. Pal can survive ....its almost 20 years now without alliance and still flying

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  11. Goh sounds arrogant and their expansion to the Philippines should be blocked to protect our own carriers. If he thinks about his members then our government should protect our own and its friends. PAL should create an alliance with ASEAN and the Pacific carriers with better benefits than the STAR alliance.

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    1. Think positive PAL they are not the best out there and you can do better, just stay focus on your goal of higher standards and better service and you can out pass its members.

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  12. PAL can organize its own alliances. Start with the Low Cost Carrier Alliances started by PAL Express.

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  13. I really hope pal joins another ariplane aliance

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  14. Fuck Star Alliance then! They racists against Filipinos thats why. Fuck you and your alliance!

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  15. Star Alliance that was created by Robert Milton (The Bully from Air Canada). This alliance will never allow PAL to join their system, because it would take away revenue from other Asia-Pacific Intercontinental Airlines. These routes are very lucrative. Pal will most like Join SKY Team as it fits their Delta Team is presently double dipping in other airlines that are part of Star Alliance who merging routes to Delta Air schedules.

    I do believe for any airlines to survive the next 50 years, they must build a bigger alliance with One World or SKY Team to put Star Alliance out of business.

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