star

Little more than a quarter of a century ago, in May 1997, five of the world’s largest airlines, United Airlines, Scandinavian Airlines, Thai Airways, Air Canada and Lufthansa, came together to form what is still the world’s largest airline alliance, Star Alliance. This move kicked off a chain reaction, with some of their direct competitors scrambling to form their own alliances. British Airways and American Airlines led in the formation of oneworld, while Air France had a similar role in the launch of SkyTeam. Fast forward 25 years and it’s hard to find a major flag carrier that hasn’t joined one of these three major blocs. But at the same time, the airline industry landscape has become more complex than it used to be in those early days. Large chunks of a growing market have been swallowed by non-aligned low-cost carriers and large regions of the globe, such as China, India, and the Middle East, have become major nodes in the global air traffic system. And all of this has happened amid a wave of technological change that has turned the distribution and marketing landscape upside down. So, are airline alliances still relevant in 2024? And how can they best serve the interests of their members? Exactly one year after his appointment, AeroTime spoke with Theo Panagiotoulias, CEO of Star Alliance to try to answer to these questions and learn about the way Star Alliance is navigating the increasingly complex environment while striving to provide value to its members. <br/>

United Airlines has begun negotiations with the Teamsters union, which is pushing for a new contract covering 10,000 aviation maintenance and related workers in the United States, the labor union said on Tuesday.<br/>The Teamsters National Negotiating Committee is seeking industry-leading wages, a faster timeline for reaching the top pay rate, improved healthcare benefits and higher safety standards. The negotiations — which have begun four months before the current contract is set to become amendable — come at a time when thousands of maintenance staff members and flight attendants across airlines are demanding higher wages and more benefits after carriers posted record profits helped by a rebound in travel demand post-pandemic.<br/>Separately, United Airlines' flight attendants are set to vote in August on whether to authorize a strike if an agreement on a new employment contract cannot be reached.<br/>

Air China is resuming its nonstop flights between Barcelona and Shanghai. Starting 27 August 2024, Air China will fly to Barcelona three times a week, departing from Barcelona to Shanghai every Tuesday, Thursday and Saturday. Air China is deploying its Airbus A350-900 aircraft to Barcelona. The Air China A350-900 seats 32 in 1-2-1 business class, 24 in 2-4-2 premium economy and 256 in 3-3-3 economy class. Air China last served Shanghai-Barcelona in 2020. The flights will take approximately 13 hours to Barcelona, and 12 hours back to Shanghai. The outbound flights from Shanghai Pudong will depart at 0045 Beijing time and arrive in Barcelona at 0805. The return flight will leave Barcelona at 1240 and arrive in Shanghai at 0650 local time the next day.<br/>

A labor union of Asiana Airlines, Korea's second-largest full-service air carrier, said Tuesday it has requested that the European Union (EU) investigate the suitability of Air Incheon's prospective purchase of Asiana's cargo division. The sale of Asiana's cargo division is part of conditions set by the EU's antitrust regulator in Korean Air's plan to acquire Asiana Airlines. Air Incheon was picked as the preferred bidder for Asiana's cargo business in June. Korean Air, the country's No. 1 air carrier, and Air Incheon concluded their contract negotiations earlier in the day and are expected to sign a memorandum of agreement Wednesday. The pilots' union of Asiana, which has opposed the Korean Air-Asiana merger, said it visited the European Commission (EC), the executive body of the EU, in Brussels on July 23 to meet with officials involved with reviewing the merger case. "We requested a thorough investigation into Air Incheon's suitability as a buyer for the cargo business," the union said in a release. Furthermore, the union urged the EU to consider a method that would ensure the employment of affected cargo pilots to remain with Asiana, instead of their employment being transferred to Air Incheon.<br/>

A new report from Alton Aviation Consultancy on the Singapore aviation sector has warned that supply chain issues – including a shortage of jets – are likely to persist into the medium term, even as the country’s airlines remain “poised for growth”. The report, released 6 August, estimates supply chains to only fully stabilise “until at least” 2025, pointing out that the issue, though “significant” will not be permanent. “Despite the efforts of manufacturers and suppliers to ramp up production to address the backlog, the complexity of the aviation supply chain, involving numerous specialised components from global suppliers, will likely prolong the resolution of these issues. The reactivation of parked aircraft and the fulfilment of new aircraft orders are gradual processes, and any delays in one part of the supply chain can have cascading effects,” states the consultancy. The report follows a year of record financial and operational performance and comes as Singapore-based operators close in on full recovery. Alton also suggests that the days of record profits – as seen by national carrier Singapore Airlines group – are a one-off phenomenon, and that there is likely to be a “reversion to the long-term mean”. The airline group delivered a record operating profit of around S$2.7b ($2.0b) for the year ended 31 March, up 1% against the previous financial year. At its annual results briefing, airline executives warned of cost and yield pressures from increased competition in the market. The Alton report concurs, noting: “It is important to recognise that the post-pandemic travel boom is exhibiting signs of normalising. As airlines resume operations and expand their capacity back towards, and beyond, pre-pandemic levels, competition in the Singapore market has intensified.”<br/>