Lufthansa-JetBlue Deal May Be Start Of A Trend

Lufthansa's surprise swoop for a 19 percent stake in discount US carrier JetBlue Airways could be the start of a large-scale ownership grab in the global airline industry.
Lufthansa's move comes as its Star Alliance -- one of the three major global airline partnerships -- expands aggressively. Star Alliance, which vies with oneworld and SkyTeam, allows airlines to widen their reach through connections with partner airlines.
State-run national carrier Air India said on Thursday it would join Star Alliance, which also includes United Airlines. Earlier this week, Air China and Shanghai Airlines formally joined Star Alliance, as it adds partners in key Asian markets.
To counter the expansion by Lufthansa and Star Alliance, Air France, which is already bidding for its SkyTeam partner Alitalia, might be interested in securing its partnership with Delta, even as the third-largest US airline mulls its merger options.
Likewise, British Airways and American Airlines could be forced into the fray.
"If I'm SkyTeam, I might be concerned about someone else making a play for Delta," said Bill Swelbar, a research engineer at MIT's International Center for Air Transportation.
"As SkyTeam and Star get stronger and stronger, can American and BA afford to sit idly by and watch the world change?" he asked. "Maybe we are looking at transformational deals here."
16/12/07 Airwise

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Categories: Foreign Dec 2007, General Aviation Dec 2007