Sir, - In the article "Aer Lingus has a lot of changing to do in a cyclical sector" (Business, July 26th), David Learmont claims surprisingly that "Airline alliances. . .are not about helping the customer. . .[but] about protecting the member airlines from spiralling competition in an increasingly deregulated marketplace".
Airline alliances are definitely about adding value and service to the customer.
Today's frequent business travellers think and act globally, and they travel to all corners of the world. No one airline can serve every destination. By creating alliances, however, a network can be formed for the convenience of customers that serves all parts of the world.
This was the logic that, more than two years ago, led to the creation of Star Alliance. Its current members (Air Canada, Air New Zealand, Ansett Australia, Lufthansa German Airlines, SAS - Scandinavian Airlines, Thai Airlines International, United Airlines and Varig Brazilian Airlines) offer more than 8,000 daily flights to 720 destinations in 110 countries around the world. Members of any Star Alliance frequent flyer programme can accumulate and redeem mileage points on all scheduled flights operated by all member airlines. Qualifying passengers have access to a large and ever increasing number of airport lounges worldwide. Timetables have been co-ordinated to lessen transit times, one-stop check-ins introduced, and wherever possible airport facilities are being moved together for increased passenger convenience.
Alliances generate substantial price benefits for passengers, as confirmed by independent research. According to David Marchik of the US Department of Transportation, since 1996 fares have dropped by 17 per cent between the US and the European countries with which it has "open skies" agreements. These agreements mostly coincide with routes flown by alliances (The Economist, July 16th). A study conducted by economists at the University of Illinois concludes that non-allied carriers charge interline fares that are 36 per cent above those charged by alliance partners.
In short, airline alliances are about helping the customer. - Yours, etc.,
Knut Lovstuhagen, Star Alliance PR Office, Frankfurt, Germany.