THE world’s four powerful airline alliances will finally put some meat on the bones of their partnerships during 1999. All will implement closer co-operation on UK sales and marketing, offer more joint flights and combine operations at airports with common branding.
British Airways-founded Oneworld is launching round-the-world fares and starting a massive branding operation at airports.
The KLM-led Wings group is enhancing its partnership with the newest entrants Alitalia and Continental Airlines.
The Qualiflyer group is expanding codeshare opportunities and opening joint UK offices. Meanwhile, the Star Alliance group is rolling out more joint fares and continuing to add new members.
Cost-saving initiatives such as the joint offices will be brought in alongside new agreements for agents to reduce overheads.
Ross Keenan, general manager UK and Ireland at Oneworld’s Qantas, said the most tangible new product for agents will be the alliance’s new Explorer fare launched last month.
Fares start from £860 for travel on three continents, with the price rising to include extra destinations. Four continents start from £1,040 and the five continents’ fare leads in at £1,190.
Keenan said this product was typical of what Oneworld was trying to achieve through the alliance.
He said:”We are looking to see how a family of companies can improve their networks.
“Explorer offers a range of fares which includes travel on all the carriers to make people aware of our networks.”
The Oneworld network is expected to be expanded this year with the addition of Japan Airlines, LOT Polish Airlines and Malev Hungarian Airlines. Keenan added Oneworld was also looking at a joint ticket office to complement combined airport services.
Closer network co-operation is also on the agenda at Wings.
KLMUK director of passenger sales Peter Cornwall said there was ongoing integration of KLM UK, KLM and Northwest Airlines’ sales teams. “We also expect closer co-operation with Alitalia on joint sales and marketing. However, this will stop short of full scale integration this year,” he added.
Alitalia and KLMUK- which started sharing Stansted and Manchester flights this winter – will also offer more joint flights into their Milan and Amsterdam hubs to feed long-haul services. Cornwall added the Alitalia element can also be enhanced during 1999 with joint branding at airports and fare deals to make KLMUK more competitive with low-cost airlines.
Next year, the Wings alliance will be widened with the integration of Continental Airlines. The Houston-based carrier already shares services with Northwest in the US and to some Asian countries, but is to extend this alliance to Europe. Continental’s involvement will be significant as it is building up its New York Newark hub to improve UK transatlantic services.
Swissair-founded Qualiflyer is opening its first joint call centre and headquarters this year. The centre, in Hammersmith, west London, opens for business from April 29.
Qualiflyer’s ‘Under One Roof’ initiative to open a joint office for sales and marketing teams, as well as other administration departments, will be finalised in 1999.
Jon Bayntun, general manager UK and Ireland at member Lauda Air, said the group was still looking for a London site, but an office will open soon.
He said:”We want people to work in one common building, but still carry out their different job functions.”
Bayntun said their were no plans to have just one sales and marketing or financial team for the group, but different departments within each airline will liaise closely with sister carriers.
He added all of Qualiflyer’s airlines were looking to offer more codeshare flights out of the UK.
Star Alliance is also increasing its size and putting together a round-the-world fare.
Thai Airways area sales manager UK and Ireland David Cook said: “We are holding regular meetings to develop the alliance. We are already planning a round-the-world fare.
The alliance is the only major grouping which already has a joint ticket office, in central London. This is expected to be enlarged when Air New Zealand, Ansett Australia, Singapore Airlines and All Nippon Airways join in 1999.
The Star Alliance is also looking at more airport co-operation and joint branding.
As the airline side of alliances take shape, UK agents can expect their commission payments to reflect a drive to reduce costs.
BA, Lufthansa and KLM UK have already reduced basic rates to 7% and their partners and rivals are expected to follow suit.