star alliance aurélien, abazar & olav. agenda why star alliance? a global solution the...
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Star AllianceAurélien, Abazar & Olav
Agenda
Why Star Alliance?A Global SolutionThe Leading NetworkStar Alliance leads in the World MarketBetter links, better serviceCommitted to improvementCommitted to creating valueMethodologyConclusion
Why Star Alliance?
Before Star Alliance, global travel was complex and inconvenient.
Connections were uncoordinated, problematic and time consuming.
Frequent Flyer Benefits, including lounge access, did not extend beyond individual airline offerings
A Global Solution
In 1997 Air Canada, Lufthansa, SAS, Thai Airways International and United responded to these needs.
Together they established Star Alliance – the first global airline alliance.
Nine years later the vision then continues to drive the alliance today.
"To be the leading global airline alliance for the high value international traveller."
A Global Solution
Star Alliance is still the leading and thelargest global alliance offering
16 quality airlines a comprehensive global network top flight products and services
delivered and adapted to different cultures
a wide range of frequent flyer travel benefits
The Leading Network
Compared to other alliances, StarAlliance offers
more flights – 14,320 non-stop flights daily – an alliance member carrier flight takes off or lands every 3 seconds
to more places – 133 countries and 772 airports
better connections – via coordinated schedules at key hubs
The Leading Network
Star Alliance is the leading global airline network with 772 airports in 133 countries.
772 Airports - 133 countries
548 Airports - 131 countries
645 Airports - 138 countries
Star Alliance
oneworld
SkyTeam
Airports served
The Leading Network
14,320 daily departures bringing a wider choice of flights with coordinated schedules making for smoother, more convenient and efficient travel.
14,320 departures
8,100 departures
14,014 departures
Star Alliance
oneworld
SkyTeam
Daily departures
Destinations
Star Alliance Leads in the World Market
26.7% 18.3% 22.4%26.7% 18.3% 22.4%
Source: IATA WATS RPKs 2003
Star SkyTeamoneworld
RPK
Source: Capacity shares from OAG files Q3 2005
Star 26%Oneworld 23%Skyteam 30%Others 21%
Star 29%Oneworld 17%Skyteam 17%Others 37%Star 17%
Oneworld 36%Skyteam 19%Others 28%
Star 35%Oneworld 11%Skyteam 24%Others 30%
Star 30%Oneworld 23%Skyteam 22%Others 25%
Star Alliance: Leading in Intercontinental Markets
Star 17%Oneworld 14%Skyteam 12%Others 57%
Europe
Star 21%Oneworld 16%Skyteam 31%Others 32%
North America
Star 23%Oneworld 9%Skyteam 0%Others 68%
South America
Star 22%Oneworld 4%Skyteam 5%Others 69%
Asia
Star 11%Oneworld 31%Skyteam 1%Others 57%
Oceania
Source: Capacity shares from OAG files Q3 2005
Strong Homemarkets in Asia, Europe and South-America
Better links, better service
StarNet is the technical infrastructure that links together member carrier computer systems and networks
StarNet helps simplify and streamline millions of complex messages and transactions.
It keeps passengers and information flowing
Making travel smoother
StarNet
Better links, better service
StarNet helps deliver harmonisedproducts, services and policies such as
real-time information on connecting flights
real-time inventory display and booking for mileage award travel
Shared facilities
More specialised facilities to ease travel or provide assistance.
Include baggage service facilities, check in areas, lounges and more.
Washington
Sao Paulo
TorontoSeoul
San Francisco Shanghai
Copenhagen
Brussels
Budapest
Frankfurt
Munich
StockholmVienna
Zurich
Seamless Travel Experience
The key mission of Star Alliance Products& Services is to provide a seamless,reliable and consistent travel experienceto all Star Alliance customers.
The following projects are designed tohelp make any journey easier andhassle-free:
Seamless Travel Experience
Interline Electronic Ticketing
Customers are able to use electronic tickets across the Star Alliance network regardless of where they fly and how many member airlines they fly with.
Interline electronic ticketing is under development and is set to eliminating the need for paper tickets across the global network.
Seamless Travel Experience
Star ConnectionsIncreasing number of connecting passengers add to the
complexity of the overall system.
Star Connections are harmonised procedures and service standards to enhance customer and baggage transfers between Star Alliance carriers.
Star Alliance has developed tools to analyse connections at risk so that proactive action can be taken to ensure that customers and baggage make their connecting flight.
Quality of Service
Quality Management
A high level quality management concept ensures consistent product delivery across the Star Alliance network.
Worldwide recognition of status and privileges.
A smooth, hassle-free travel experience.
Convenient global access.
Quality of Service
Service Audits
Star Alliance is committed to ensuring that the set service standards are adhered to. Consequently, the Star Alliance Quality Management conducts regular service audits.
Quality of Service
Best Practices
Each Star Alliance member brings into the alliance its unique culture, systems and business background. Star Alliance ensures that best practices in each airline are shared among the members in order to continuously improve service to customers.
An additional key element of the Star Alliance Quality Management Concept is to benchmark its products and services with other service providers and alliances in the airline and other industries.
Committed to improvement
Star Alliance has created a dedicated organisation to support product development.
based in Frankfurt, Germany
68 airline professionals and specialists
working to deliver added value to customers and member airlines
Committed to creating value
Star Alliance's dedicated organisationworks closely with airline experts to addvalue to customers via:
developing new products and services
improving and building facilities at key hubs
fine-tuning connection processes enhancing schedule coordination spreading valuable skills, training and
operating efficiencies
Committed to creating value
Creating value for member airlines by broadening a network that strengthens
every member enhancing cooperation and ties
between carriers saving costs through joint purchasing
initiatives creating technical support systems
that enable employees to deliver more to customers
Creating added value
By using Star Alliance‘s wealth of airline knowledge and experience...
By embracing and showcasing Star Alliance cultural diversity...
Star Alliance delivers a global solution to frequent international travellers.
Methodology
Sources: www.staralliance.comThe alliance partner
websites: www.aircanada.com www.airnewzealand.com www.lufthansa.com www.scandinavian.net www.singaporeair.com www.thaiairways.com www.united.com
Interview: Have a contact in the
Product & Services division of Star Alliance
Need to send an email to set an interview if possible
Send an email via the « contact us » section of the website to see if we can get a feedback and obtain more information
Conclusion
We know: Who are the allies and their profile They cover different geographical areas They are highly complementary partners resulting in high
synergy They belong to the same industry How the alliance was formed and its objectives Some of the resources pooled into the alliance but we
need more detail (we don’t know exactly who contributes to what?)
Some of the alliance organisation but we don’t know exactly the distribution of tasks
Some of the benefits and advantages but we need more details in terms of scale/size effect, risk sharing or cost sharing
Conclusion
We don’t know:If the alliance covers an entire value
chain or if it is focusing only on one stage. We definitely know that it covers the commercial aspect but maybe more?
The risks induced by the allianceHave to look at the endogamy or
exogamy aspect of the alliance
Thank you for your attention!
Any Questions?