China Southern leaving ST
#1
FlyerTalk Evangelist
Original Poster
Join Date: Jul 2006
Location: Hong Kong, France
Programs: FB , BA Gold
Posts: 15,557
China Southern leaving ST
https://www.skyteam.com/en/about/pre...hina-Southern/
Speculations are that they willl join OW given their strong link with AA.
Speculations are that they willl join OW given their strong link with AA.
#3
Join Date: Aug 2006
Location: ZRH, MNL
Programs: FB Gold
Posts: 974
#4
FlyerTalk Evangelist
Join Date: Feb 2002
Location: Montreux CH
Programs: FB Platinum, M&M FTL, BA Blue
Posts: 11,622
Probably a load of consolidation coming there. I would expect CX to tend towards Star, as they seem to have developed some sort of relation with Lufthansa (codeshares, mileage earning, etc). I have found CZ one of the better Chinese airlines though, better than MU. Shame if they go, because I am now fairly solidly anchored in SkyTeam!
#5
Join Date: Apr 2016
Location: YOW
Programs: Flying Blue Plat, Accor Gold
Posts: 392
I am kind of confused of their decision though, and how AF/KL can potentially be affected.
For now, CZ basically has very limited service into OW's hub: NRT/HND for JL, LHR for BA, SYD for QF and basically that is it. Needless to say they tend to serve like 5 to 6 destinations to Australia (SYD, MEL, BNE, PER, CNS) so QF's connection is quite unnecessary. And CZ is not even flying into any of the AA's real hub: DFW, MIA, ORD, CAN-DFW may not have enough load and CAN-MIA shall be out of range, only with LAX and JFK that can be a blood bath.
On the other hand, they have quite some services into ST's hubs: CDG, AMS, NBO, MEX, (JFK), FCO, SVO, CGK, HAN/SGN, etc. The same, they tend to fly quite some short-hauls into Vietnam and Indonesia so connection is negligible. Eventually, CZ will lose a big game in Europe and it is lose-lose for both AF/KL and CZ. CZ will lose all the connections into the rest of Continental Europe, for any connecting through LHR or MAD will not be distance-wise. While AF/KL and DL will lose all connections in PEK and CAN, meaning for the rest of mainland China, they have to mainly rely on PVG which is not an easy point to connect to domestic flights, the rest WUH, CTU, XMN, HGH, non of them is a hub for MU, unless they have to count on the CDG-KMG for the connections.
AF/KL shall be quite unhappy about this I think, but there is nothing they can do as DL and MU shall be the main reason why CZ leaves ST.
AF shall drop CDG-CAN route later IMO.
For now, CZ basically has very limited service into OW's hub: NRT/HND for JL, LHR for BA, SYD for QF and basically that is it. Needless to say they tend to serve like 5 to 6 destinations to Australia (SYD, MEL, BNE, PER, CNS) so QF's connection is quite unnecessary. And CZ is not even flying into any of the AA's real hub: DFW, MIA, ORD, CAN-DFW may not have enough load and CAN-MIA shall be out of range, only with LAX and JFK that can be a blood bath.
On the other hand, they have quite some services into ST's hubs: CDG, AMS, NBO, MEX, (JFK), FCO, SVO, CGK, HAN/SGN, etc. The same, they tend to fly quite some short-hauls into Vietnam and Indonesia so connection is negligible. Eventually, CZ will lose a big game in Europe and it is lose-lose for both AF/KL and CZ. CZ will lose all the connections into the rest of Continental Europe, for any connecting through LHR or MAD will not be distance-wise. While AF/KL and DL will lose all connections in PEK and CAN, meaning for the rest of mainland China, they have to mainly rely on PVG which is not an easy point to connect to domestic flights, the rest WUH, CTU, XMN, HGH, non of them is a hub for MU, unless they have to count on the CDG-KMG for the connections.
AF/KL shall be quite unhappy about this I think, but there is nothing they can do as DL and MU shall be the main reason why CZ leaves ST.
AF shall drop CDG-CAN route later IMO.
#6
FlyerTalk Evangelist
Join Date: Aug 2009
Location: Paris, France
Programs: AF/KL Flying Blue Platinum for life/Club2000 Ultimate, Accor ALL Diamond
Posts: 21,927
This is really very bad news. CAN was a very nice airport to connect through and CZ was clearly the best mainland China carrier among the big 3. The JV with AF may survive this, who knows ?
CX is likely not happy about this, CAN being so close to HKG, unless there is a plan to create a kind of dual hub linked by high speed train. And about CX rumored to leave OW, that would be a real shame for one of the founding member of this alliance. And CX moving to *A, well...I don’t see why this would be a better situation for them with Air China, SQ and TG...the region is super crowded. If CX wants to change alliance, they would be better in ST (that would be really great ).
CX is likely not happy about this, CAN being so close to HKG, unless there is a plan to create a kind of dual hub linked by high speed train. And about CX rumored to leave OW, that would be a real shame for one of the founding member of this alliance. And CX moving to *A, well...I don’t see why this would be a better situation for them with Air China, SQ and TG...the region is super crowded. If CX wants to change alliance, they would be better in ST (that would be really great ).
#7
FlyerTalk Evangelist
Join Date: Feb 2000
Location: London, UK and Southern France
Posts: 18,364
It could indeed or, even if not a JV as such, at least an extensive codeshare agreement. The way I read it was that CZ wanted to be free to develop bilateral partnerships rather than alliance-wide arrangements but I may have misread it and brunos might be right that CZ's plan is to change alliances, in which case I would agree with him that OW would be the most likely one, although I can't see CX being very keen on this.
#9
FlyerTalk Evangelist
Join Date: Aug 2009
Location: Paris, France
Programs: AF/KL Flying Blue Platinum for life/Club2000 Ultimate, Accor ALL Diamond
Posts: 21,927
It could indeed or, even if not a JV as such, at least an extensive codeshare agreement. The way I read it was that CZ wanted to be free to develop bilateral partnerships rather than alliance-wide arrangements but I may have misread it and brunos might be right that CZ's plan is to change alliances, in which case I would agree with him that OW would be the most likely one, although I can't see CX being very keen on this.
https://www.skyteam.com/fr/about/pre...hina-Southern/
Exit date will be sometime in 2019
#10
FlyerTalk Evangelist
Join Date: Feb 2000
Location: London, UK and Southern France
Posts: 18,364
yes, Brunos is right. They leave Skyteam, it’s official
https://www.skyteam.com/fr/about/pre...hina-Southern/
Exit date will be sometime in 2019
#11
FlyerTalk Evangelist
Original Poster
Join Date: Jul 2006
Location: Hong Kong, France
Programs: FB , BA Gold
Posts: 15,557
I think that you might have misread my post. I was not questioning whether CZ was leaving ST. This has been officially confirmed. Rather, what I was not sure about is whether brunos was right that CZ may join another alliance or whether my understanding that CZ is in fact moving away from broad alliances to pursue bilateral partnerships instead was correct.
I agree with you that the development of JVs and code-shares within or outside alliances, make alliances less relevant today.
CZ and AA seems to have engaged in a close collaboration. And AA is rejoicing:
Newsroom - American Airlines Statement on China Southern - American Airlines Group, Inc.
OW is really agitated. I am not aware that CX has any plan to leave OW even if rumors abound. But QR is clearly unhappy with QF and AA, and might move to a closer link (including on FFP benefits) with only BA, CX and LATAM. Whether these airlines want it is another question. OW is not happy with the QF-EK link. AA needs a serious Chinese partner and is likely to engage in more codeshares and FFP benefit sharing even if CZ does not join OW in the short run. BA has also entered in a significant codesharing agreement with CZ.
Notwithstanding alliances, DL-AFKL-MU is a strong partnership and BA-AA-CZ another one. Again, my feeling is that global alliances are becoming less relevant. Even CX is now partnering with LH with (some) reciprocal FFP benefits.
#12
FlyerTalk Evangelist
Join Date: Aug 2009
Location: Paris, France
Programs: AF/KL Flying Blue Platinum for life/Club2000 Ultimate, Accor ALL Diamond
Posts: 21,927
I think that you might have misread my post. I was not questioning whether CZ was leaving ST. This has been officially confirmed. Rather, what I was not sure about is whether brunos was right that CZ may join another alliance or whether my understanding that CZ is in fact moving away from broad alliances to pursue bilateral partnerships instead was correct.
#14
Join Date: Aug 2013
Location: Taiwan
Programs: IHG Diamond, Marriott Platinum, Hilton Gold, oneworld Emerald
Posts: 1,164
#15
FlyerTalk Evangelist
Join Date: Feb 2002
Location: Montreux CH
Programs: FB Platinum, M&M FTL, BA Blue
Posts: 11,622
And it has kept itself out of an alliance so far. I wonder if it will be possible to use China Southern next year and still profit from all the benefits of FB Platinum. Need to know that before making long term bookings. It would be silly to end up without any much needed XPs.