ermen

Here we go again.

CX -> *A
CZ -> *O

Wondering though if there is a business case for CX to join Star.

http://m.scmp.com/news/hong-kong/economy/article/2121660/airline-industry-braces-china-southern-exit-skyteam-alliance

Aus106080

Star has Singapore airlines

ermen

i am not convinced that cx and sq are direct rivals anymore with the rise of the me3

sxc

I really don't know when speculation has become news. There seem to be no actual verified sources referenced in this article. Not even a "according to sources familiar with the matter". The only thing fueling this article is this:
Hardly something to build an article around.

jagmeets

Ahhh, Danny!

THIS, is the place to speculate- not the SCMP!

Aus106080

I agree. I am not convinced that CZ will join OW and Cx will leave by this article.

triplefives

Lots of reports about CZ inquiring re the possibility of leaving Skyteam which is probably more fact than fiction. Whether that happens is a different story.

The possibility of CX leaving OW is absolutely hearsay and conjecture and reigniting 5 year old rumors (https://www.flyertalk.com/forum/cath...neworld-2.html). There is no basis for stating that CX might leave OW as a result and is arguably irresponsible reporting.

garykung

Has Danny Lee made SCMP another Oriental Daily?

FWIW - it makes sense for CX to join *A. However, the root problem is CZ's departure from ST has not yet confirmed. CZ could potentially pull a dramatic move, like M&As, with one of the majors.

Also - CX's joining to *A, if ever happened, will definitely face some major resistance from the U.S.

andersonCooper

SCMP again..of course.

BTW, CZ leaving ST has been rumored since late Oct. Guess Danny took a long vacation this time.
http://aviationweek.com/awincommerci...eaving-skyteam

PaulInTheSky

If CX were to leave OneWorld, it would be a huge downgrade of OneWorld, leaving a big hole at the Asian regions. Joining *A will make the alliance significantly more powerful than ever. Not a good move for people traveling with elite benefits. One way that CX can do by being *A is to get to keep F lounge access only to F flying or being DMs.

I don't know how much better it is going to be for CZ to join OneWorld. If they say CZ expands as much as other Chinese carriers, then how come ST is still so weak compared to the other alliances?

At the end, if CZ were to leave Skyteam, join OneWorld, and CX were to leave OneWorld, this would turn out to be a downgrade.

swingaling

It might make sense for CZ to join OW or leave ST at the very least. CZ leaving ST would raise other issues, of course. Would MF follow since CZ is a majority owner?

That said, if you follow the money, you can guess what might happen.

• DL invested $450M in MU in 2015
• UA and AC have a long-standing strategic partnership (future JV possible?)
• AA invested $200M in CZ in 2017

As a founding member of OW, doesn't CX enjoy certain rights that they would not get at *A (such as veto rights)?

Can you elaborate on this?

I definitely agree with this. I'd hate for OW to lose CX and end up with CZ.

andersonCooper

You can't apply the normal logic to OW though. OW is the most loose alliance of the three (CX worked with CA UA and LH, AA with CZ - 2 % equity for instance).

And this post is (again) from Danny, which does not create too much credibility.

swingaling

That's a fair point. If CX made those decisions based purely on the presence (or lack thereof) of strong commercial ties with its alliance partners, they probably would have quit OW long ago. And CX's close ties to NZ are not unique in the industry; QF has closer ties with EK than they do with their OW partners (though we all know they want to start a JV with AA).

I don't have an explanation for why CX doesn't have closer ties with AA, BA, etc but I assume they feel it's in their interest to keep things at arms length. At least we don't have a situation where one member is constantly bashing CX very publicly (such as what AA is doing to QR).

Kachjc

are u forgetting about QF constantly bashing CX?
AA betraying CX and going with CZ and launching HKG routes

JohnGreat

I have mixed feeling for CX leaving Oneworld and joining Start Alliance. First, I feel Oneworld members took advantage of CX in terms of using CX lounge in HKG and redeeming on CX. CX treat Oneworld member very well, exceptionally well. I have friends who are members for AA or JL loves to fly CX when possible. If CX do leave Oneworld, it's will be a big lost for Oneworld. AA do not has a 'strong' foothold in US although they are the largest airline with terrible network. I can't say for all the cities AA served but at least in SFO it's not as convenience. Beside flying to major cities like JFK, DFW, etc... most city needs to have connection or connections which I think it's so stupid. It's either there's no flight served or long transit. I'm always stuck with AA just because I want to maintain status for MPC. Oneworld needs to expand their members by recruiting Alaska Air, Hawaii Air, etc
If CX do join Star Alliance which I personally support, it will helps CX expends it's foothold in US cities, big or small but there's SQ and BR. That will be a disadvantage for CX as CX may become a 2nd class member and with SQ, Star Alliance already has a very strong foothold in Asia plus with BR. They are very fierce competitors and we have to agree they are excellent airlines. For this, I doubt there's chances for CX to join Star Alliance.