The news magazine of the South Pacific · since 1930

Pacific Islands Monthly, 1 March 1999Vol. 69 No. 3

Ansett Australia to join Star Alliance

p. 15 · Read in the full issue

AIRLINE Ansett Australia announced mid-February it would join the Star Alliance net work this month, a move expected to pro vide enormous financial benefits.

Membership to one of the world’s largest airline alliances would provide Ansett with greater global market reach, increased economies of scale in purchases including aircraft, insulation from downturns and cost cutting through rationalisation of opera tions.

Star Alliance was formed in 1997 when

five airlines - Lufthansa, Scandinavian Airline Systems,

Thai Airways

International and united Airlines - joined together to achieve world

wide recognition

and to provide convenient glob al access and a seamless travel

experience. “Ansett travellers will benefit from the hassle-free, simplified global trav el and worldwide recognition that has founded the excellent reputation of the Star Alliance since its inception in May 1997,”

Ansett said.

Ansett, which is 50 per cent owned by Air new Zealand and 50 per cent owned by News Corp Ltd, has held observer status in the network since May 15, 1998.

The airline said frequent flyers can expect greater levels of service and rewards and their status will be recognised and hon-

cured wherever they travel with any of the Star Alliance carriers.

Brazil’s Varig has since joined the net work and Air Nippon currently has observ er status and will formally join in October 1999.

When Ansett and Air New Zealand join, the network would offer more than 720 des tinations in over 110 countries, more than 250 lounges and more than 1,650 aircraft.

Ansett, along with Air New Zealand, will gain full membership of the global air line group on March 28.

In December, Ansett reported a first quarter operat ing profit of $66.7 million and said it was on track to meet its budgeted 1998/99 profit mar gin of three per cent. Ansett was due to report its interim results when this issue went to press.

(Aap) ■