Star Alliance Aurélien, Abazar & Olav. Agenda Why Star Alliance? A Global Solution The Leading Network Star Alliance leads in the World Market.

Star AllianceAurélien, Abazar & Olav

Agenda

Why Star Alliance?A Global SolutionThe Leading NetworkStar Alliance leads in the World MarketBetter links, better serviceCommitted to improvementCommitted to creating valueMethodologyConclusion

Why Star Alliance?

Before Star Alliance, global travel was complex and inconvenient.

Connections were uncoordinated, problematic and time consuming.

Frequent Flyer Benefits, including lounge access, did not extend beyond individual airline offerings

A Global Solution

In 1997 Air Canada, Lufthansa, SAS, Thai Airways International and United responded to these needs.

Together they established Star Alliance – the first global airline alliance.

Nine years later the vision then continues to drive the alliance today.

"To be the leading global airline alliance for the high value international traveller."

A Global Solution

Star Alliance is still the leading and thelargest global alliance offering

16 quality airlines a comprehensive global network top flight products and services

delivered and adapted to different cultures

a wide range of frequent flyer travel benefits

The Leading Network

Compared to other alliances, StarAlliance offers

more flights – 14,320 non-stop flights daily – an alliance member carrier flight takes off or lands every 3 seconds

to more places – 133 countries and 772 airports

better connections – via coordinated schedules at key hubs

The Leading Network

Star Alliance is the leading global airline network with 772 airports in 133 countries.

772 Airports - 133 countries

548 Airports - 131 countries

645 Airports - 138 countries

Star Alliance

oneworld

SkyTeam

Airports served

The Leading Network

14,320 daily departures bringing a wider choice of flights with coordinated schedules making for smoother, more convenient and efficient travel.

14,320 departures

8,100 departures

14,014 departures

Star Alliance

oneworld

SkyTeam

Daily departures

Destinations

Star Alliance Leads in the World Market

26.7% 18.3% 22.4%26.7% 18.3% 22.4%

Source: IATA WATS RPKs 2003

Star SkyTeamoneworld

RPK

Source: Capacity shares from OAG files Q3 2005

Star 26%Oneworld 23%Skyteam 30%Others 21%

Star 29%Oneworld 17%Skyteam 17%Others 37%Star 17%

Oneworld 36%Skyteam 19%Others 28%

Star 35%Oneworld 11%Skyteam 24%Others 30%

Star 30%Oneworld 23%Skyteam 22%Others 25%

Star Alliance: Leading in Intercontinental Markets

Star 17%Oneworld 14%Skyteam 12%Others 57%

Europe

Star 21%Oneworld 16%Skyteam 31%Others 32%

North America

Star 23%Oneworld 9%Skyteam 0%Others 68%

South America

Star 22%Oneworld 4%Skyteam 5%Others 69%

Asia

Star 11%Oneworld 31%Skyteam 1%Others 57%

Oceania

Source: Capacity shares from OAG files Q3 2005

Strong Homemarkets in Asia, Europe and South-America

Better links, better service

StarNet is the technical infrastructure that links together member carrier computer systems and networks

StarNet helps simplify and streamline millions of complex messages and transactions.

It keeps passengers and information flowing

Making travel smoother

StarNet

Better links, better service

StarNet helps deliver harmonisedproducts, services and policies such as

real-time information on connecting flights

real-time inventory display and booking for mileage award travel

Shared facilities

More specialised facilities to ease travel or provide assistance.

Include baggage service facilities, check in areas, lounges and more.

Washington

Sao Paulo

TorontoSeoul

San Francisco Shanghai

Copenhagen

Brussels

Budapest

Frankfurt

Munich

StockholmVienna

Zurich

Seamless Travel Experience

The key mission of Star Alliance Products& Services is to provide a seamless,reliable and consistent travel experienceto all Star Alliance customers.

The following projects are designed tohelp make any journey easier andhassle-free:

Seamless Travel Experience

Interline Electronic Ticketing

Customers are able to use electronic tickets across the Star Alliance network regardless of where they fly and how many member airlines they fly with.

Interline electronic ticketing is under development and is set to eliminating the need for paper tickets across the global network.

Seamless Travel Experience

Star ConnectionsIncreasing number of connecting passengers add to the

complexity of the overall system.

Star Connections are harmonised procedures and service standards to enhance customer and baggage transfers between Star Alliance carriers.

Star Alliance has developed tools to analyse connections at risk so that proactive action can be taken to ensure that customers and baggage make their connecting flight.

Quality of Service

Quality Management

A high level quality management concept ensures consistent product delivery across the Star Alliance network.

Worldwide recognition of status and privileges.

A smooth, hassle-free travel experience.

Convenient global access.

Quality of Service

Service Audits

Star Alliance is committed to ensuring that the set service standards are adhered to. Consequently, the Star Alliance Quality Management conducts regular service audits.

Quality of Service

Best Practices

Each Star Alliance member brings into the alliance its unique culture, systems and business background. Star Alliance ensures that best practices in each airline are shared among the members in order to continuously improve service to customers.

An additional key element of the Star Alliance Quality Management Concept is to benchmark its products and services with other service providers and alliances in the airline and other industries.

Committed to improvement

Star Alliance has created a dedicated organisation to support product development.

based in Frankfurt, Germany

68 airline professionals and specialists

working to deliver added value to customers and member airlines

Committed to creating value

Star Alliance's dedicated organisationworks closely with airline experts to addvalue to customers via:

developing new products and services

improving and building facilities at key hubs

fine-tuning connection processes enhancing schedule coordination spreading valuable skills, training and

operating efficiencies

Committed to creating value

Creating value for member airlines by broadening a network that strengthens

every member enhancing cooperation and ties

between carriers saving costs through joint purchasing

initiatives creating technical support systems

that enable employees to deliver more to customers

Creating added value

By using Star Alliance‘s wealth of airline knowledge and experience...

By embracing and showcasing Star Alliance cultural diversity...

Star Alliance delivers a global solution to frequent international travellers.

Methodology

Sources: www.staralliance.comThe alliance partner

websites: www.aircanada.com www.airnewzealand.com www.lufthansa.com www.scandinavian.net www.singaporeair.com www.thaiairways.com www.united.com

Interview: Have a contact in the

Product & Services division of Star Alliance

Need to send an email to set an interview if possible

Send an email via the « contact us » section of the website to see if we can get a feedback and obtain more information

Conclusion

We know: Who are the allies and their profile They cover different geographical areas They are highly complementary partners resulting in high

synergy They belong to the same industry How the alliance was formed and its objectives Some of the resources pooled into the alliance but we

need more detail (we don’t know exactly who contributes to what?)

Some of the alliance organisation but we don’t know exactly the distribution of tasks

Some of the benefits and advantages but we need more details in terms of scale/size effect, risk sharing or cost sharing

Conclusion

We don’t know:If the alliance covers an entire value

chain or if it is focusing only on one stage. We definitely know that it covers the commercial aspect but maybe more?

The risks induced by the allianceHave to look at the endogamy or

exogamy aspect of the alliance

Thank you for your attention!

Any Questions?