star

The Star Alliance, which marked its 20th anniversary in ceremonies in Frankfurt this weekend, is focused on initiatives that will better serve the almost 690m passengers who fly each year on one or more of its carriers. Pedro Heilbron, CEO at Copa Airlines and Star Alliance chairman, said that while a few white spots remain in the alliance’s network, most notably in Australia and Russia, adding new member airlines was no longer a priority. “There are not many airlines that are interested in joining and that Star is interested in having join, although membership is not closed,” Heilbron said. A major focus for Star, which has a 50-strong dedicated staff at its Frankfurt headquarters, is transforming the alliance into an organisation that uses digital technology to deliver on the seamless service promise. “We have a brand and we have built a very strong proposition, but like any other business we have to adapt to a changing environment and landscape,” Star CEO Jeffrey Goh said. “We want to be much more focused on our customer proposition … airline customers expect their journey to be seamless and to travel trouble-free. So we have launched a technology solution for our members to assist their passengers when there is a disruption or irregularity that allows for a simpler re-booking process.” Most significantly, Star is developing alliance digital platform that is now in the test phase. While details are not yet public, Goh gave an example to illustrate how this digital platform could improve customer service across the alliance. When passengers books an interline ticket across more than one airline today, they typically pre-select a seat on the first airline leg, but not on the second leg. The digital platform would enable pre-seat selections across all legs of Star carriers regardless of starting point.<br/>

Codes to gain access to United cockpits may have been made public, the carrier said on Monday, but it stopped short of confirming a report that a flight attendant inadvertently published the codes online in a potential threat to air security. The airline still could keep its flight decks secure through other measures, said a spokeswoman for United Continental. She declined to specify the other safeguards because of security considerations. "We are working to resolve this issue as soon as possible," she said. Citing a pilot who was briefed on the matter, the Wall Street Journal reported on Sunday that United had alerted pilots that access codes to unlock cockpit doors were mistakenly posted on a public website by a flight attendant. The United unit of the Air Line Pilots Association said in a statement that the accidental leak of information showed the need for stronger protections for flight deck doors. The union has long backed secondary barriers, which it said would cost $5,000 each, and called on Congress to mandate them.<br/>

THAI remains upbeat about its full-year revenue growth target of 5-10% despite a 47.3% drop in net profit in Q1 amid fierce competition and fuel price hikes. Usanee Sangsingkeo, THAI's acting president, said Monday that the company posted a Q1 net profit of 3.17b baht, down 47.3% year-on-year. The company's total revenue in the first three months was 49.8b baht, down 0.8% year-on-year, due to lower passenger and excess baggage revenue, decreasing fuel surcharges and tougher competition. Total expenses rose by 9.1% to 46.9b baht as fuel expenses climbed 18.5% to 2b baht. Jet fuel prices rose by 45.8% in the quarter. Usanee said high competition in the aviation industry resulted in the decline of the company's passenger yield by 12% from 2.5 baht per head per kilometre to 2.2 baht per head per kilometre. The profit decline was mainly attributed to the fuel price hike, she said, adding that fuel prices increased to an average of US$62 (2,141 baht) over the<br/>period, compared to $48 in Q1 last year. THAI's cabin factor in Q1 was as high as 82.8% with total passengers of 6.52m people, up from 77.5% in the same period of last year and higher than the industry's average cabin factor rate of 80.1%," Ms Usanee said.<br/>

Aimia Inc., operator of loyalty program Aeroplan, plunged as much as 65% after Air Canada said it will cut ties with the company in 2020 and launch its own rewards plan. Aimia faces the risk that other Aeroplan members may decide to terminate their membership because Air Canada is the “backbone,” said Martin Landry, an analyst with GMP Securities. The country’s largest airline amounts to about 10% of Aimia’s revenue, but more than 75% of Aeroplan miles are redeemed with the carrier. Air Canada’s contract with Aimia runs through June 29, 2020. Until then, Aeroplan members will be able to earn and redeem miles under the program. The departure of Air Canada will have a dramatic effect on Aeroplan’s revenue, according to Drew McReynolds, an analyst with RBC Capital Markets. Air Canada expects the net present value of the program repatriation to exceed C$2b over 15 years, with more financial details to be provided Sept. 19. <br/>

EgyptAir's Air Cairo Company will operate direct flights from Sharm El Sheikh and Hurghada to Armenia and back twice a week until the end of the year, according to ARKA News Agency. “Air Cairo is coming to Armenia’s market for the first time,” head of Anrivatour, AIR CAIRO official representative company in Armenia, Hripsime Stambulyan said Thursday, adding that flights to Hurghada will be launched on June 20, and to Sharm El Sheikh from June 22. Armenian tourists used to fly to Egypt through Georgia, where the company operates direct flight. “Our marketing studies show that the majority of tourists from Georgia are Armenians,” commercial director of AIR CAIRO, Essam Azab said. “That is why we have decided to organize a direct air communication with Armenia. We have decided so also for intensifying the flow of Armenian tourists,” he added. <br/>