LH738
Dec 19, 02, 12:00 am
http://www.airlinequality.com/news/saa.htm
South African Airways board will consider whether to join an international airline alliance or not in January 2003. One way or another, the board's decision will have strategic consequences for the national carrier.
This is the first time since the departure of former CEO Coleman Andrews (a strong opponent of joining such an alliance) that the board has weighed up the benefits of doing so.
It comes as SAA has only begun to show a substantial profit this year after years of losses. Global alliances have swept the international aviation industry as airlines fight for market share in a cut-throat competitive environment.
"SAA has felt the pressure to join one of these alliances," says SAA corporate communications manager Rich Mkhondo. "Consequently we have done an intensive evaluation of whether this would be the right way forward for us."
Mkhondo will not disclose the conclusions of the evaluation, but indicates a recommendation will be made to the SAA board in January.
SAA says it has "seriously contemplated" joining one of the two largest alliances the Star Alliance and One World.
While SAA is evaluating its position, Star Alliance has identified Africa as one of a few geographic regions where it lacks a "home carrier".
Christian Klick, Star Alliance's vice- president of corporate affairs, says the alliance is talking to several African carriers with a view to recruiting an airline or airlines in this region. He declines to reveal their identities, but SAA is likely to be among these, as it is one of the largest airlines on the continent.
South African Airways board will consider whether to join an international airline alliance or not in January 2003. One way or another, the board's decision will have strategic consequences for the national carrier.
This is the first time since the departure of former CEO Coleman Andrews (a strong opponent of joining such an alliance) that the board has weighed up the benefits of doing so.
It comes as SAA has only begun to show a substantial profit this year after years of losses. Global alliances have swept the international aviation industry as airlines fight for market share in a cut-throat competitive environment.
"SAA has felt the pressure to join one of these alliances," says SAA corporate communications manager Rich Mkhondo. "Consequently we have done an intensive evaluation of whether this would be the right way forward for us."
Mkhondo will not disclose the conclusions of the evaluation, but indicates a recommendation will be made to the SAA board in January.
SAA says it has "seriously contemplated" joining one of the two largest alliances the Star Alliance and One World.
While SAA is evaluating its position, Star Alliance has identified Africa as one of a few geographic regions where it lacks a "home carrier".
Christian Klick, Star Alliance's vice- president of corporate affairs, says the alliance is talking to several African carriers with a view to recruiting an airline or airlines in this region. He declines to reveal their identities, but SAA is likely to be among these, as it is one of the largest airlines on the continent.