Shanghai Airlines and Air China will officially join Star Alliance today in a bid to cut costs and improve service in Shanghai and Beijing, the most competitive aviation markets on the mainland.
With the country's compound annual passenger growth rates of 14 per cent to 15 per cent, mainland airlines are prime candidates for global airline alliances through which they can share airport facilities such as check-in counters, boarding bridges and VIP lounges.
'For the past few years, we have been particularly interested in reaching a mutually productive relationship with China carriers,' Star Alliance chief executive Jaan Albrecht said yesterday.
The signing ceremony to be held in Beijing brings the number of Star Alliance members to 12, accounting for one-third of the market share in Shanghai.
Shanghai Airlines, with a 17 per cent market share in Shanghai, wants to further improve its service to international standards by joining an international airline alliance, according to Zhou Chi, chairman of Shanghai Airlines.