Business report online 16.12.04:
SAA signs intention to join Star Alliance
December 15, 2004
SAA had signed a memorandum of understanding to join the large Star Alliance to improve its international network and benefit from the 15-member partnership's buying power, the carrier said yesterday.
The memorandum was signed by SAA's chief executive, Khaya Ngqula, in Bangkok on Monday.
SAA will benefit from the alliance's cross-marketing, code sharing agreements and reduced add-on fees for flights using the partners' networks.
"We fully commit to the integration into the Star Alliance within a year to ensure that our customers derive maximum benefits," said Ngqula, adding:
"There is no question that the revenue model offered by Star Alliance is what SAA needs for a successful turnaround."
SAA reported a R132 million profit before tax in the six months to September, after a R2.4 billion loss in the period last year. It posted a pretax loss of R8.7 billion in the 2003/04 fiscal year.
Star Alliance is the biggest of the global airline groupings by market share, distance flown and number of passengers.
Its members include United Airlines, Lufthansa, Singapore Airlines and Air Canada