Airline Alliance Evolution - Germany...1 Airline Alliance Evolution Extending Customer Choices and...
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1 Airline Alliance Evolution Airline Alliance Evolution Extending Customer Choices and Benefits Extending Customer Choices and Benefits Frank Jahangir Frank Jahangir Delta Air Lines Staff VP Sales and Affairs Delta Air Lines Staff VP Sales and Affairs – – EMEAI EMEAI American Chamber of Commerce American Chamber of Commerce – – Berlin 18 Berlin 18 th th February 2010 February 2010
Transcript of Airline Alliance Evolution - Germany...1 Airline Alliance Evolution Extending Customer Choices and...
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Airline Alliance EvolutionAirline Alliance EvolutionExtending Customer Choices and BenefitsExtending Customer Choices and Benefits
Frank JahangirFrank Jahangir
Delta Air Lines Staff VP Sales and Affairs Delta Air Lines Staff VP Sales and Affairs –– EMEAIEMEAI
American Chamber of Commerce American Chamber of Commerce –– Berlin 18Berlin 18thth February 2010February 2010
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Airline Alliances Airline Alliances –– the landscapethe landscape
§§ The emergence of AlliancesThe emergence of Alliances
§ Born in the 1990’s
§ SkyTeam, oneworld and Star are the three main global airline alliances
§§ Why Airline Alliances?Why Airline Alliances?
§ Offer increased customer benefit
§ Offers value to airlines who can’t consolidate
§ Closer business relationships with partners
§ Closely scrutinized by government regulators
§§ Alliances in the headlinesAlliances in the headlines
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Alliances Alliances -- a standard in the a standard in the airline industryairline industry
Alliances expansionAlliances expansion
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Customers
CompanyEmployees
Global
Alliances
Three-pronged value
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The Customer Front
CustomersCustomers
§A wider choice of flights and destinations
§More convenient connections thanks to coordinated
alliance schedules
§Optimised fares to more destinations (alliance regional
passes and promotions)
§Passenger loyalty quickly and better rewarded, by
earning status and mileage accrual/redemption on any
alliance airline
§Enhanced customer service procedures (easier
booking, simplified ticketing, single check-in, smoother
transfers)
§A consistent standard of performance, quality and
detailed attention to customer service (seamless
service)
§Worldwide status recognition (access to lounges, elite
benefits, etc....)
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§ Enhance motivation and pride by fostering
employees’ confidence in a leading global
entity
§ Opportunities for better training
§ Cross-company career paths
EmployeesEmployees
The Employee Front
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Cost SynergiesTo achieve
economies of scale
Cost SynergiesTo achieve
economies of scale
GlobalStandardization
GlobalStandardization
Know-howTo benefit from
reciprocal expertise
Know-howTo benefit from
reciprocal expertise
MarketingTo use partners’marketing forces
MarketingTo use partners’marketing forces
NetworkTo be present without
operating flights
NetworkTo be present without
operating flights
Alliance Benefits
The Company Front
Company
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Three major alliances exist todayThree major alliances exist today
1997 – 2010“The Way the Earth Connects”
2000 – 2010“Caring more about you”
1999 – 2010“oneworld revolves around you”
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Alliances: How they Square upAlliances: How they Square up
AMERICASAMERICAS
10 Non Members 10 Non Members
EUROPE/CISEUROPE/CIS
12 Non Members12 Non Members
AFRICA& M EASTAFRICA& M EAST
9 Non Members9 Non Members
ASIAASIA
8 Non Members8 Non Members
11 MEMBERS11 MEMBERS
Founded by BA AA Founded by BA AA CX QFCX QF
Future Members:Future Members:
S7 AIRLINES7 AIRLINE
11 MEMBERS11 MEMBERS
Founded by DL AF Founded by DL AF AM KEAM KE
Future Members:Future Members:
RO RO –– ASSOCIATEASSOCIATE
VN (2010) MEA VN (2010) MEA (2010) Assoc(2010) Assoc
26 MEMBERS 26 MEMBERS Founded by LH AC Founded by LH AC UA SK TGUA SK TG
Future Members:Future Members:
Agean AirlinesAgean Airlines
Air IndiaAir India
TAM AirlinesTAM Airlines
MEMBERSMEMBERS
Pending Final Pending Final ApprovalApproval
2009 2009 ImplementationImplementation
Pending Pending ImplementationImplementation
ATI / Joint Venture ATI / Joint Venture statusstatus
11311398981371371414Revenue (Billion Revenue (Billion US $ )US $ )
142142169169160160Countries servedCountries served
489 million489 million330 million330 million462 million462 million506 million506 millionPassengers per Passengers per yearyear
REST OF REST OF
INDUSTRYINDUSTRY
(Major Non Aligned (Major Non Aligned –– Carriers)Carriers)
ONEWORLDONEWORLD
11 MEMBERS11 MEMBERS
Founded 1999Founded 1999
SKYTEAMSKYTEAM
11 MEMBERS11 MEMBERS
Founded 2000Founded 2000
STAR ALLIANCESTAR ALLIANCE
26 MEMBERS26 MEMBERS
Founded 1997Founded 1997
Membership and Market data for the largest Airline Alliances (as of November 2009)
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Incrementalrevenue
Cost savings
FFP
Internet
Awareness
Customer Satisfaction
Mishandledbaggage
Network
AllianceMarket Share
AllianceTraffic Share
Jointtraining
Acquired Know-how flux
StaffSatisfaction
On-time performance
L/F & Yield
CargoMarket Share
Cargo “One-roof”
Initiative
ServiceQuality
Revenue
Benefits all roundBenefits all round
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After 10 years of service, SkyTeam continues to offer the best After 10 years of service, SkyTeam continues to offer the best network in the industry:network in the industry:
§§ Steady growth of members, focusing on creating a global quality Steady growth of members, focusing on creating a global quality network, enabling seamless travel to add to customer experiencenetwork, enabling seamless travel to add to customer experience
§§ 856 destinations all over the globe 856 destinations all over the globe
§§ 415 lounges worldwide 415 lounges worldwide
§§ Shared loyalty benefitsShared loyalty benefits
§§ Central organizationCentral organization
SkyTeam: A decade of Achievements SkyTeam: A decade of Achievements
and Looking Aheadand Looking Ahead
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Any Questions?Any Questions?
