Change is the only constant for Star Alliance

Star Alliance Embraces Tech Challenges

by Neelam Mathews, Jan 7, 2016

Star Alliance founder member United Airlines’ network operations center in Chicago keeps abreast of flight planning, weather forecasting, crew scheduling, maintenance control and ATC liaison. (Photo: Neelam Mathews)

Airlines pay a steep price for their memberships in global alliances, but with those costs come the benefits of pooled investment in modernizing information technology hubs and connectivity systems. For Star Alliance, the use of technology to accelerate complex booking and operational processes ranks among the chief advantages, according to executives attending a recent chief executive board meeting in Chicago hosted by founding member airline, United.

In June, Star Alliance collaborated with Sabre to use an industry-first technology to simplify booking of its Round the World fares. Travel agents connected to the Sabre global distribution system (GDS) can now book and automatically calculate the corresponding fares. In the past they often had to calculate pricing manually due to the routings involved in RTW traffic. Meanwhile passengers can now get their boarding passes for all legs of their journey and receive miles for every portion of their trip.

Star also plans to apply lessons learned from running new common IT processes at London Heathrow Terminal 2. It has found the model suitable for airports where existing infrastructure issues or space constraints limit operations. Examples include São Paolo’s Guarulhos, Tokyo Narita and LAX in Los Angeles. “Because each airport terminal is different, solutions will be different,” Star Alliance corporate vice president Christian Klick told AIN. “But we are able to include both process as well as technology solutions in all three. These include ground handling standards, self-service solutions and many behind-the-scenes processes.” Work has started to allow Air India to join Star members at Heathrow’s Terminal 2.

Star Alliance has continuously invested in developing and implementing “plug and play” systems, a concept that allows any member carrier to link its IT systems into a hub operated by the alliance, rather than having to create bilateral IT links. The concept allows Star Alliance carriers to issue boarding passes for all connecting flights on virtually any combination of interline itineraries. It has finished implementing two IT hub applications for frequent flier programs, said Klick. As a result, it has eliminated retroactive mileage crediting. In addition, the new system allows for a near instant update of the roughly 20,000 daily frequent flier status changes across all 28-member carriers.

“To fulfill Star Alliance’s proposition that you can earn status miles and redeem them across the whole network, these systems have to sync behind the scenes,” said Klick. “These two big projects have made this much easier and both of them are online already….Less manual intervention is required and a lower error rate lead to efficiencies for the member airlines.”

Star Alliance has also introduced dedicated security lanes under the Star Gold Track branding for first- and business-class customers at around 70 airports worldwide. It plans to add more locations this year along with Gold Track Immigration at certain airports.

United Pushes China Expansion After Hitting Roadblocks in India

Neelam Mathews

 - December 28, 2015, 10:00 am (AIN-US) 

United Airlines is using its new Boeing 787-9s to develop services to Chinese cities such as Chengdu. [Photo: Boeing]

The rapid expansion of seat capacity to and from India by Middle East carriers is impeding United Airlines’ plans to build market share in the country. Instead, United, which already has daily nonstop service from New York to both Delhi and Mumbai, is mainly focusing on expanding operations to China’s secondary cities. Acccording to Brian Znotins, United’s network vice president, the carrier now has more nonstop flights to China than any other U.S. airline. “Despite the slowdown of China’s economy, as travel from China grows, we will be there in future,” said Znotins.

One new route pending Chinese government approval is a nonstop seasonal service to Xian that it hopes to start in May 2016. Demand for flights to the fast-growing city of Chengdu has exceeded United’s expectations, according to Znotins. Apple has an iPad factory in Chengdu in partnership with Foxconn.

For now, San Francisco is the main hub for United’s service into China, with the Boeing 787-9 deployed on these services. “Once Chengdu matures we will add more [U.S.] hubs,” said Znotins, adding that United’s partnership with Air China is the foundation for these expansion plans.

Meanwhile, Air India is working with its Star Alliance partner United to deal with the overcapacity issue created by rival Middle East carriers. The two airlines are discussing a new codeshare for services to and from India and this should provide seamless travel to multiple U.S. airports via United’s hubs in Chicago, New York and San Francisco (which Air India serves with nonstop flights).

“This is one sure way to deal with Middle East carriers. If we put our act together, we will be able to work out a solution,” commented Air India commercial director Pankaj Srivastava. The Indian flagcarrier is now exploring the viability of new direct service to Washington, D.C.

United currently has a codeshare arrangement with India’s Jet Airways, in which Abu Dhabi’s Jet Airways now has a 24 percent stake. Znotins would not comment on whether United might abandon this codeshare if it commits to an agreement with Air India.

Star repeats Heathrow T2 mantra

Jane's Airport Review

Neelam Mathews, Chicago
2015-Dec-14

Star Alliance plans to apply lessons learned from day-to-day operations at Heathrow Terminal 2 (T2), with particular attention to capacity-constrained airports.

T2 opened in June 2014 as a base for all but one carrier (Air India) in the 28-member alliance, with an emphasis on self-service technology for passenger processing. Speaking to IHS Jane's  in early December 2015 during the Star Alliance annual meeting of chief executives in Chicago, chief executive officer (CEO) Mark Schwab said that success in this area can be mirrored at other airports.

Value-added initiatives include dedicated Star Gold Track security lanes for first and business class customers. Gold Track is available at around 70 airports worldwide. More locations will be added in 2016. Star Alliance is also looking at some airports "where we can offer this service for Gold Track members at immigration clearance and minimize their wait time", said Schwab.

Star Alliance leaders reviewed airport projects completed in 2015 and looked ahead to 2016. CEOs noted that some fine-tuning is still required at Heathrow T2, and efforts will continue in 2016 to bring Air India into T2.

Another initiative involves .......Read more in Janes Airports Review (Subscription)

Star Alliance Welcomes Friends of the Family

By Neelam Mathews

 Dec 14, 2015

Star Alliance CEO Mark Schwab (right) discusses the group's new Connecting Partner Model concept alongside the CEO of the first airline to participate, Mango's Nico Bezuidenhout. (Photo: Neelam Mathews)

South African Airways subsidiary Mango Airlines plans to join the Star Alliance network by the third quarter of 2016 under Star’s new “Connecting Partner Model,” concept, potentially paving the way for more budget carriers to enter the 28-airline alliance.

Star Alliance made the announcement at its annual Chief Executives Board meeting in Chicago on December 10. With the addition, Star Alliance will get access to 51 percent of the South African market.

The new model looks at adding routes operated by “low-cost” and “hybrid” airlines to the network. “With a focus on ‘Friends of the Family,’ the Alliance plans to add connectivity to these types of carriers within the family of Star Alliance,” said Star Alliance CEO Mark Schwab. “Many already own or are transitioning parts of their operations on to these types of platforms. There are also other parts of world we have a desire to look around where the panorama does not provide a full service and where entities like Mango provide connectivity.” Star has already started talks with Brazilian low-fare carrier Azul following Avianca recent induction. “We are now only concentrating on solving the second half of the solution in Brazil,” added Schwab.

Another likely addition in the near future could involve Singapore Airlines’ long-haul budget subsidiary, Scoot.

Although Star could accommodate two carriers in India, no active discussions have begun as Air India, a Star member, further integrates into the network of member airlines’ bilaterals and code shares, explained Schwab. India’s largest budget carrier, IndiGo, has not shown interest in diluting its present model.

Meanwhile, Star appears to have abandoned efforts to attract a Russian carrier after past hits and misses. “The Russian geography is well served on an international basis for the last couple of years and has not been, frankly, on our radar screen,” Schwab told AIN.

Though Connecting Partners need to comply with Star’s operating standards they will not become a member of the Alliance itself. Only those transferring between a Star Alliance member airline and a Connecting Partner (and not on a point to point) will get benefits such as passenger and baggage through check-in.

“Embracing change and challenging the status quo would be a contributing factor to Star choosing us…We are the first on the African continent to offer a full suite of mobile apps, Wi-Fi, tickets through retail stores,” Mango CEO Nico Bezuidenhout told AIN, who insisted the new arrangement would not compromise his airline’s budget model. “Star has been surprisingly flexible in their engagement,” he said. “Traditional network carriers can be stuck in their ways. Becoming a Connecting Partner gives us a competitive advantage that immediately grows into market share.” 

Star Alliance sees unity in diversity of culture and product

Neelam Mathews

Dec 19 2014

Read full story on-

http://www.runwaygirlnetwork.com/2014/12/19/star-alliance-sees-unity-in-diversity-of-culture-and-product/

NEW DELHI: In an era of globalization, increasingly there is a tendency to standardize culture. In this rush to be part of an international cluster, one could easily lose track of the city one is visiting given the disappearance of the national dress and to an extent, local cuisine. It comes as a breath of fresh air when airlines take that extra step to retain a whiff of the best of their national identity. This is apparent in Star Alliance, a membership club of 28 airlines that propagates unity in diversity.

Easier said than done? “Not so,” said Star spokesman Christian Klick this week during the alliance’s CEO board meeting in New Delhi. Klick firmly believes that each member airline projects its attitude in service, food, cabin interiors, and crew uniforms, and each makes a big effort to project its uniqueness.

Airline logos and aircraft liveries are powerful national symbols. From Lufthansa’s crane, THAI’s lotus and Air India’s Maharajah to the SWISS flag and Air New Zealand’s Koru (Maori for ‘loop’), the images are timeless and used in every aspect of design.

Lufthansa Quick Check-in

Exclusive! Who is merging with whom in Indian aviation?

Neelam Mathews

July 19, 2014

If you thought the end of losses for airlines operating in India was history, you might want to think again. So volatile is the situation that with the possible start of giant Tata-SIA soon, even Jet-Etihad has realized it cannot be silent anymore. A press briefing called next week will have both Naresh Goyal and James Hogan addressing us mere mortals. Don’t bash me up for this, but besides the fact they are expected to inform us on how the India market figures in their strategy, we are hearing a buzz that they might even announce the acquisition of a large ailing budget airline (SpiceJet?) that is suffering from TDS and service tax payment defaults. However, AerospaceDiary could not confirm this.  Just reporting a buzz! Moreover, that is where, we suspect a blog differs from a newspaper report. Taking a bit of editorial leverage here!

Air India has joined Star Alliance and that might give it a temporary relief as it adds more codeshares to its portfolio- read- more revenue. While this may not be viewed by competitors as something that eats into their business, today, every morsel counts. Let us look at the aviation scenario that the budget chose to ignore. Barring those 200 airports, which could give the regional airlines a push- if there was a policy!), God alone knows, when both will see the light of day.

We are also hearing another airline, Air One, has got its NOC. So, another issue to add to the woes of Indian aviation. Does that reaffirm our theory of consolidation in the business? We think so.

Star appeal: Air India joins alliance

Neelam Mathews

July 15, 2014

Air India became the 27th member of Star Alliance on 11 July in an official ceremony at Indira Gandhi International Airport (IGIA) in Delhi, India.

An earlier invitation for Air India to join Star was extended in late 2007, but was later withdrawn after the airline failed to meet the minimum criteria to join.

The business environment has changed since then. Air India showed signs of stability while European airlines lost market share to Middle Eastern carriers, and Star approached Air India again in December 2013. Air India has met 221 of the 226 requirements to join the alliance, Air India chairman and managing director Rohit Nandan told IHS Jane's a few days before the ceremony. More on ...IHS Janes...

SITA Introduces iBeacon Tech at Airports

AINONLINE

by  NEELAM MATHEWS

SITA expects the use of new technologies such as Apple’s iBeacon to enhance passengers’ experience at airports. (Photo: SITA/Ernst Tobisch)

June 30, 2014, 11:53 AM

IT provider SITA has begun using new technologies such as Apple’s iBeacon to provide real-time information on mobile devices to help passengers move seamlessly across airports to board flights on time. American Airlines has become the first airline to use the SITAcommon-use beacon registry, launched at the recent SITA Air Transport IT summit in Brussels. A six-month pilot program at Dallas/Fort Worth will use 100 iBeacons–the largest ever deployment and a precursor to a permanent implementation in eight hubs.

SITA installs the Apple-supported iBeacons on airport walls; they measure about one inch in diameter and carry a range of 2 meters to 100 meters. The iBeacons use Bluetooth low energy and geofencing to trigger the display of location-relevant information on passengers’ devices.

Following the disappearance of Malaysia Airlines Flight 370SITA has started six-month trials with several airlines, simultaneously, for using technology already installed in the aircraft to provide advanced tracking capabilities. The airline operations center system (AIRCOM) server flight tracker merges the server with its Future Air Navigation System (FANS) ground application, already installed in many aircraft. “So the solution does not call for extensive additional cost or investment by the airlines,” SITA vice president of aircraft solutions Philip Clinch told AIN. SITA has presented the system to IATA.

SITA recognized the need for an integrated industry approach while working at several international airports. Its common-use beacon registry defines standard data sets and beacon types to be positioned at gates, retail areas or checkpoints. It gives the industry a single point of contact for common-use beacons deployed at any airport around the world. “With it, airports can share the metadata with airlines and other partners and allow passengers to receive accurate and relevant information,” said SITA chief technology officer Jim Peters.

Already, American Airlines has begun talks with One World partners British Airways and Japan Airlines for sharing the beacon registry, American Airlines director of mobile apps and wearables Phillip Easter told AIN.

SITA has also completed trials using Google Glass and smart watch for Virgin Atlantic staff handling premium customers at airports. “I am hoping, with the development of bendable displays, wraparound ‘mini-tablets’ that actually fit right on the sleeve of an agent or cabin staff could be developed,” said Peters. However, Shashank Nigam, founder of SimpliFlying, cautions too many applications could become challenging for airlines. “We should be careful not overstep,” he said.

Meanwhile, SITA, which completed the complex integration of Air India and Indian Airlines two years ago, has been instrumental in integrating Air India’s Sabre system into the Amadeus platform of Star Alliance. The carrier joins Star on July 11.

Air India to join Star on July 10

Neelam Mathews
June 23, 2014

Air India will officially join Star Alliance on July 10, when  its systems -all ready to go- will be integrated into the global alliance systems, AerospaceDiary learns.
We apologize for the long lapse in not connecting with you.
This will follow approval-likely to be given- by the Board of members of Star in London on June 23, today.
"The road has been an ardous one, but we've got there," said an AI official.
Now we look forward to happier days ahead!

Tata SIA Airlines Sees Bright Future SINGAPORE AIR SHOW » 2014

by  NEELAM MATHEWS

February 12, 2014, 3:44 AM

India’s newest domestic startup, full-service Delhi-based TataSIA Airlines, could have an advantage over newcomer budget-carrier AirAsia India as the latter is forced to wait for its air operators permit (AOP), which has been delayed by the decision of the Indian Directorate General of Civil Aviation (DGCA) to issue a public notice requesting comments. This could put on hiatus AirAsia’s plans of launching before summer. Tata SIA, for its part, “expects to start operations by mid-2014,” a spokesman told AIN.

AirAsia India was due to have started operations by the end of 2013; investment company Tata Sons holds a 30-percent share in the budget carrier, while also holding an interest in TataSIA–a potential conflict of interests it has refused to comment on. Somewhat surprisingly, India’s Competition Commission seems to have no objection to this, saying one carrier is full service and the other a budget, despite there being very little difference in practice. It is clear, however, that Tata is much more interactive with SIA than with AirAsia.

The new full-service airline–Tata SIA–is a $100 million joint venture between Tata Sons and Singapore International Airlines. Tata’s share is 51 percent, while SIA owns 49 percent. The airline is set to lease 20 A320s from Chinese-owned, Singapore-based lessor BOC Aviation. Tata SIA is clear that it will be full-service airline, effectively filling a niche, given that 75 percent of seats in India currently are budget.

In a report released in the third week of December, the DGCAsaid that, in the region, 5.58 million passengers traveled by air in December, 3.37 percent more than in the same month in the previous year.

SIA CEO Goh Choon Phong speaking at a recent analyst briefing on half-year results alluded to the fact that he saw the venture facing challenges in the very competitive domestic market, including a rule that mandates it operate for five years and count a fleet of 20 aircraft before it is permitted to fly internationally. “But we believe that we have the right partner. In fact, we believe that we have the best partner we could find, someone we know for a long time: Tata Sons. And we believe that we also have the right environment, with India liberalization taking place, to actually enter this market, and we believe we can make a positive contribution to make it work for India,” added Goh.

SIA, a member of Star Alliance, is expected to reap benefits from Tata SIA in India with the alliance open to a second domestic carrier member, following the announcement of Air India’s re-entry to Star. This could present competition to carriers targeting the Indians traveling to the U.S. via the Middle East. “India is big enough to accommodate a second carrier,” Markus Ruediger, spokesman for Star Alliance, told AIN. He confirmed that “at present there are no negotiations,” but he added that any second carrier “must benefit and the alliance must benefit.”

Air India Eyes 2015 Star Alliance Admission

AINONLINE

by  NEELAM MATHEWS

Lufthansa CEO Christoph Franz (far left) greets Rohit Nandan, Air India chairman and managing director (far right), following the December 13 Star Alliance board meeting in Vienna as Star Alliance CEO Mark Schwab (center left) and Air Canada CEO Calin Rovinescu (center right) look on. (Photo: Star Alliance)

January 10, 2014, 12:19 PM

The Star Alliance has set a new target of 2015 for Air India to join its ranks following a unanimous vote by member airlines to restart the process of integrating the Indian flag carrier. The alliance suspended integration in 2011 on grounds that Air India had “not met minimum joining conditions agreed in December 2007.” With signs of stability and fleet rationalization, however, Star has agreed to give Air India a second chance.

“When we stopped integration, we thought Air India needed more time for its merger and preparation for its future growth and development…We feel the time has come,” Star Alliance official Markus Ruediger told AIN. “As was said at the Star board meeting held in Vienna [on December 13], changes in Air India are pointing in the right direction.”

In the past few years, the advent of aggressive Arabian Gulf carriers and Jet Airways’ venture with the UAE’s Etihad Airways has taken a large chunk of business from European carriers.

As a member of the Star Alliance, Air India will offer a global integrated network, “beneficial for both sides,” said Rohit Nandan, Air India chairman and managing director.

“Sharing of best practices between members on fuel and operational issues are benefits to be got from the alliance,” said Ruediger. Mutual benefit might also come from lessons learned by Star members facing recent Boeing 787 reliability problems, an Air India official told AIN.

At the time of the suspension of Air India’s integration, airline information technology consultant SITA had completed part of a $190 million migration of Air India and Indian Airlines’ IT systems—Unisys and Speedwing—to a single code. The migration marked a step toward aligning processes and systems of the two airlines, a requirement for Air India’s entry into Star. In addition to the core passenger services suite, SITA agreed to implement an online booking engine, departure control system, check-in and automated boarding control, baggage reconciliation system and a frequent-flier system.

Some work still needs to be done. “Customer service levels might not necessarily be on par,” said Ruediger. “We are working with Air India on this.”

Alliances Set Sights on Air Astana

AIN AIR TRANSPORT PERSPECTIVE » JANUARY 6, 2014

by  NEELAM MATHEWS

Air Astana plans to take delivery of a third Boeing 767-300ER this year. (Image: Boeing)

January 6, 2014, 1:30 PM

Resolved on tapping the booming Central Asian market, global alliances SkyTeam, OneWorld and Star Alliance have approached Kazakhstan national carrier Air Astana with offers to join their ranks. In response, the airline recently commissioned U.S.-based Seabury Group to prepare a report on whether it should enter an alliance “and which one, because all alliances want us to join them,” Air Astana president Peter Foster told AIN in Astana recently.

“The year 2014 will be a big year for us as we will decide how to structure our medium-haul fleet,” said Foster. “Our first consideration will be range and then costs when we evaluate our options.” Over the past two years Air Astana rolled over virtually its entire fleet, replacing all its airplanes except its Boeing 757s.

Now the market leader in Kazakhstan, Central Asia, Southeast Russia and Western China, Air Astana remains concerned that by allowing other airlines into its network through an alliance the added capacity volumes could damage yields. “The devil is in the detail…It’s a lot of management time, expense and hassle…We may be there or may be not…[However], we are open to partnerships,” said Foster.

In its 2012 to 2016 passenger traffic forecast, IATA projected a 20.3-percent annual growth for Kazakhstan’s international markets and 22.5-percent increase in domestic traffic. Central Asia, a region bereft of carriers certified to IATA’s operational safety audit (IOSA) standards, has emerged as a major growth market that Air Astana appears uniquely positioned to exploit. “China is huge for us,” said Foster. “Even so-called small cities have the population of Kazakhstan…Anything beyond Chengdu is virgin territory. With only a few airlines flying [to it], we can fly dailies with an A321 and can also go farther west.”

The airline operates a fleet of 12 A320s, seven Embraer E190s and five Boeing 757-200s. It recently took delivery of two new Boeing 767-300ERs, ordered together with three Boeing 787-8s in February 2012. Plans call for a third new Boeing 767-300ER to join the fleet this year. It started more than 20 new regional routes over the past 20 months, giving it a total of 60. It plans to use the new Boeing 767s to replace aircraft of the same type on domestic trunk routes from the Almaty, Astana and Tyra hubs, as well as operate international services to Amsterdam, Bangkok, Beijing, Frankfurt, Hong Kong and Kuala Lumpur.