Oneworld group mulling low-cost, emerging-market members

The Oneworld alliance, which includes British Airways and American Airlines, is reviewing the case for seeking members from the ranks of discount carriers while exploring measures to fill gaps in emerging markets. Rob Gurney, who took over as Oneworld’s CEO in October, said he’s considering the group’s approach to low-cost operators that account for an ever-increasing share of global traffic, and evaluating steps to boost its presence in Africa, India and China. Oneworld is the smallest of the three main airline groupings, with 14 members versus 28 at Star Alliance and 20 at SkyTeam, though it claims to have a greater proportion of “blue chip” brands. Gurney said that while alliances remain vital in encouraging customer loyalty and boosting revenue, they must keep pace with industry consolidation and the joint venture pacts that have become key profit drivers for airlines. “The value proposition hasn’t evolved as rapidly as market structures, industry trends or the operating models of our member airlines,” Gurney said. “Like any enterprise that perhaps hasn’t moved at sufficient pace, you need to address that. This is a business.” The CEO declined to reveal what new customer initiatives are under discussion, while saying he aims to establish an “ambitious agenda.” Oneworld needs to think through how it might accommodate discount carriers without doing damage to existing members, Gurney said. <br/>