1. Star Alliance
Aurélien, Abazar & Olav

2. 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

3. 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

4. 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."

5. 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

6. 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 airports
better connections – via coordinated schedules at key hubs

7. The Leading Network Airports served
772 Airports countries
548 Airports countries
645 Airports countries
Star Alliance
oneworld
SkyTeam
Star Alliance is the leading global airline network with 772 airports in 133 countries.

8. 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.

9. Destinations

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

11. Star Alliance: Leading in Intercontinental Markets
Oneworld %
Skyteam %
Others %
Star %
Oneworld %
Skyteam %
Others %
Star %
Oneworld %
Skyteam %
Others %
Star %
Oneworld %
Skyteam %
Others %
Star %
Oneworld %
Skyteam %
Others %
Source: Capacity shares from OAG files Q3 2005

12. Strong Homemarkets in Asia, Europe and South-America
North America
Europe
Star %
Oneworld %
Skyteam %
Others %
Star %
Oneworld %
Skyteam %
Others %
Asia
Star %
Oneworld %
Skyteam %
Others %
South America
Oceania
Star %
Oneworld %
Skyteam %
Others %
Star %
Oneworld %
Skyteam %
Others %
Source: Capacity shares from OAG files Q3 2005

13. 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

14. 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

15. 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

16. 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:

17. 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.

18. 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.

19. 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.

20. 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.

21. 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.

22. 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

23. 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

24. 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

25. 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.

26. Methodology Interview:
Sources:
The alliance partner websites:
Interview:
Have a contact in the Product & Services division of Star Alliance
Need to send an to set an interview if possible
Send an via the « contact us » section of the website to see if we can get a feedback and obtain more information

27. 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

28. 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

29. Thank you for your attention!
Any Questions?