| Journal: TWUK | Section: |
| Title: | Issue Date: 03/07/00 |
| Author: | Page Number: 6 |
| Copyright: Other |
British Midland to set up Star Alliance deals
British Midland is pressing ahead with a number of initiatives with new partners. Paul Norris reports from Vienna
BRITISHMidland will have joint sales and marketing agreements with its Star Alliance partners from September, according to chairman Sir Michael Bishop.The new deals will include Lufthansa, SAS and the Austrian Airlines group.
Sir Michael said he did not foresee any competition issues arising from the new joint agreements.
“As long as we inform the European Commission, there shouldn’t be any problems,” said Sir Michael.
He added that British Midland’s formal joining of Star Alliance last Saturday would also lead to the exploration of other synergies between his carrier and its partners.
These will include airport services, ground handling and aircraft purchasing. British Midland is also planning to codeshare with Austrian Airlines on services to Vienna by next summer.
Star Alliance’s European airlines already have a 7% basic commission structure in the UK and will look to have additional joint-payment deals. Star Alliance is also planning to study British Airways’ move to zero commission from January and could follow suit.
Sir Michael pledged that the airline’s entry into Star Alliance would not mean widespread restructuring resulting in job losses. “Star Alliance gives prospects on jobs,” he said.B
British Midland will be the main UKmember of the Star Alliance but other partners do not plan to scale down workforces in the UK.
n British Midland will delay the unveiling of its new name and brand until it is sure it can launch transatlantic services.
Sir Michael confirmed September was the provisional date for the rebrand but said he would not change the look of the airline until UK and US regulators have given British Midland rights to launch Heathrow services to the US.
He expects a clear indication by the end of this month on whether British Midland can start transatlantic flights. The airline must know by the autumn, in order to prepare for a summer 2001 start.
Sir Michael: will be keeping the EC informed of any new joint agreements to avoid any problems with competition regulations