Star Alliance Aurélien, Abazar & Olav

Agenda Why Star Alliance? A Global Solution The Leading Network Star Alliance leads in the World Market Better links, better service Committed to improvement Committed to creating value Methodology Conclusion

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 the largest 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, Star Alliance 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 Airports served 772 Airports - 133 countries 548 Airports - 131 countries 645 Airports - 138 countries Star Alliance oneworld SkyTeam Star Alliance is the leading global airline network with 772 airports in 133 countries.

The Leading Network Daily departures Star Alliance oneworld SkyTeam 14,320 daily departures bringing a wider choice of flights with coordinated schedules making for smoother, more convenient and efficient travel.

Destinations

Star Alliance Leads in the World Market RPK 26.7% 18.3% 22.4% Star oneworld SkyTeam Source: IATA WATS RPKs 2003

Star Alliance: Leading in Intercontinental Markets Oneworld 23% Skyteam 30% Others 21% Star 29% Oneworld 17% Skyteam 17% Others 37% Star 17% Oneworld 36% Skyteam 19% Others 28% Star 30% Oneworld 23% Skyteam 22% Others 25% Star 35% Oneworld 11% Skyteam 24% Others 30% Source: Capacity shares from OAG files Q3 2005

Strong Homemarkets in Asia, Europe and South-America North America Europe Star 21% Oneworld 16% Skyteam 31% Others 32% Star 17% Oneworld 14% Skyteam 12% Others 57% Asia Star 22% Oneworld 4% Skyteam 5% Others 69% South America Oceania Star 23% Oneworld 9% Skyteam 0% Others 68% Star 11% Oneworld 31% Skyteam 1% Others 57% Source: Capacity shares from OAG files Q3 2005

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 harmonised products, 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. Brussels Budapest Copenhagen Frankfurt Munich Toronto Stockholm Vienna Seoul Washington San Francisco Zurich Shanghai Sao Paulo

Seamless Travel Experience The key mission of Star Alliance Products & Services is to provide a seamless, reliable and consistent travel experience to all Star Alliance customers. The following projects are designed to help make any journey easier and hassle-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 Connections Increasing 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 organisation works closely with airline experts to add value 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 Interview: Sources: www.staralliance.com The 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 alliance Have to look at the endogamy or exogamy aspect of the alliance

Thank you for your attention! Any Questions?