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Air China and Shanghai Airlines join Star Alliance

Air China Limited and Shanghai Airlines, formally joined Star Alliance at a ceremony held in the new Terminal Three at Beijing Capital International Airport. With the addition of the two Chinese airlines, Star Alliance now has 19 member carriers operating 17,000 daily flights to 897 destinations in 160 countries, offering international travellers more choice than any other airline alliance. On domestic routes alone, Air China and Shanghai Airlines have added more than 40 new destinations to the Star Alliance network, thereby bringing alliance benefits to many more travellers.

"China is one the fastest growing aviation markets in the world and as of today, with Air China and Shanghai Airlines now formally Star Alliance member airlines, we offer an unrivalled network of flight connections to, from, and within this market for international travellers", said Jaan Albrecht, CEO Star Alliance.

Air China is China’s national flag carrier and sole designated passenger airline partner of the 2008 Beijing Olympic Games. Air China was listed on the Hong Kong Stock Exchange and the London Stock Exchange on December 15, 2004. Its operational head office is in Beijing, the capital of the Peoples Republic of China (PRC) and an important aviation hub for domestic and international flights. It also provides airline-related services, including aircraft maintenance, ground services and in-flight catering services in Beijing, Chengdu and other locations through its own business units and joint ventures.

Air China Chairman Mr. Li Jiaxiang said: "This is a historical moment. The world’s fastest growing, and largest airline alliance – Star Alliance – has arrived in the world’s fastest growing, and largest country – China. By becoming a member of Star Alliance China’s premier airline, Air China, is set to undergo many years of strategic co-operation with a large group of the world’s leading airlines."

Shanghai Airlines is China’s first commercial airline with multiple investments. It was the first Chinese airline to list on the stock exchange and issued A Shares in 2001.

Shanghai Airlines Chairman Mr. Zhou Chi said: "We are very excited that Shanghai Airlines can from now on serve as a bridge between China and the world via its Shanghai hub by joining Star Alliance. Star Alliance can broaden its network to cover China. Shanghai Airlines can expand its network to reach more points around the world and deliver higher quality services and more rewards to its customers. By joining Star Alliance we believe Shanghai Airlines has a brighter future ahead of it."

Dual Hub Strategy for China

In order to provide better interconnectivity between international flights and domestic destinations in China, Air China, Shanghai Airlines and the other Star Alliance member carriers serving China, are currently working on improving the two main hub Airports Beijing and Shanghai-Pudong.

In Beijing, Terminal 3 is scheduled to open in March 2008 and will be the new home for all Star Alliance member carriers serving the Chinese Capital.

At Shanghai-Pudong, Terminal 2 will also open in March 2008 and will permit all Star Alliance member airlines with flights to thriving metropolis to operate from the same terminal.

Frequent Flyers

By joining Star Alliance, Air China and Shanghai Airlines will be able to provide added benefits to their frequent flyers. Participants in Air China’s PhoenixMiles and Shanghai Airlines’ Crane Club Frequent Flyer Programmes (FFP) will now be able to collect and redeem miles on all other Star Alliance member carriers. In addition, miles collected on flights operated by Star Alliance member airlines will count towards achieving either Air China Platinum, Gold or Silver Status or Crane Club Gold or Silver in Shanghai Airlines’ FFP.

Customers who are enrolled in the other member carrier FFPs can now collect and redeem miles on Air China and Shanghai Airlines flights, increasing the attractiveness of all member carrier FFPs.

Products

Air China and Shanghai Airlines are now also participating and selling the 11 Star Alliance Fare Products. Included in these is the round the world fare, which has now more flight options for customers to choose from, as it now includes the routes served by the two Chinese member carriers. Additionally, both carriers can now be included in itineraries of the Star Alliance Circle Asia and Circle Pacific fares. Moreover, Air China and Shanghai Airlines are now also part of the dedicated conventions and meetings product, Star Alliance Conventions Plus.

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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