The Allied Front: Star Alliance Shelves GDS Alternative Platform

Star Alliance said it has suspended development of its Alternate Content Access Platform, a content distribution alternative for alliance members that threatened to funnel bookings away from entrenched distribution players. "Even though letters of intent were signed with three providers (G2 SwitchWorks, ITA Software and Lufthansa Systems), recent changes in the distribution landscape have delayed the implementation process of alternative distribution solutions," the alliance stated. Star Alliance launched the initiative in June 2005, seeking to cut what it saw as high expenses paid to global distribution systems. The alliance said the development of the program helped several alliance carriers gain "more favorable deals with GDSs." Star said, "Still, Alternate Content Access Platforms are nevertheless an integral part of Star Alliance's distribution strategy and we continue to look at working with them in markets outside North America."

SkyTeam Names Van Wijk Chairman
SkyTeam last month during a meeting in Vancouver named Air France-KLM vice chairman Leo Van Wijk to chair its governing board. The CEOs of each SkyTeam airline comprise the governing board, which "functions as the central strategy and decision-making body of the alliance," SkyTeam said. Van Wijk—"who was instrumental in architecting KLM Royal Dutch Airlines' entrance into SkyTeam"—this year stepped down after nearly 10 years as president and CEO of KLM. SkyTeam said Van Wijk would focus on "improving the reciprocity of frequent flyer programs, SkyTeam's co-location policy at airports, notably at London Heathrow International Airport, and the membership process for new Alliance partners and associate members."

Continental, Kingfisher To Launch Codeshare
Continental Airlines this month announced a partnership "for frequent flyer and airport lounge access reciprocity and future codesharing" with India-based Kingfisher Airlines. Continental said the two carriers in October—upon the launch of Continental's new nonstop service between Newark and Mumbai— will enable lounge and frequent flyer reciprocity. "By the end of the year, the carriers plan to begin codesharing. Continental will place its code on Kingfisher flights connecting to Continental's daily flights between New York and Delhi and new service between New York and Mumbai," Continental said. "Continental is really our first codeshare arrangement," said Sudhan Thomas, Kingfisher Airlines regional director of North America. "It's a one-way codeshare, meaning Continental will bring their flight numbers on Kingfisher. It's really a tactical move for us, as Continental launches their upcoming nonstop to Bombay." Thomas said the nonexclusive codeshare deal represents Continental's first frequent flyer agreement with an India-based carrier. Thomas said the 26-month-old carrier, which serves only intra-India routes, is not yet seeking membership in a major global airline alliance. "Our immediate objective is to build strong bilaterals that feed into our network. While we have built some strong bilaterals with Delta, Northwest and KLM-Air France—the first frequent flyer bilateral for us—we also have built strong relationships with American Airlines, British Airways and other Oneworld carriers."

Oneworld Recruits Malev, Royal Jordanian Link Up
Malev Hungarian Airlines, which joined Oneworld in April, is launching codeshares with partners American Airlines and Royal Jordanian. The carrier already has added the AA prefix to flights operated between its Budapest hub and New York JFK, Frankfurt and Zurich, while Malev's designator has been placed on service between Zurich and Chicago O'Hare and JFK, as well as between those U.S. airports and Los Angeles. The alliance said Malev will initiate codeshares with Oneworld recruit Royal Jordanian later this month when Malev launches its Amman-Budapest route, and said it "plans to expand to Royal Jordanian destinations such as Abu Dhabi, Delhi, Dubai and Mumbai and Malev gateways Berlin and Copenhagen." Oneworld said Malev would ramp up codeshare arrangements with other alliance carriers upon U.S.-EU Open Skies deal enactment next year.

United Abandons Star Loyalty Upgrade Program
United Airlines suspended participation in a Star Alliance program that enables reciprocal upgrades for frequent flyers of alliance partners. United touted its entry into the program last summer, but in May it posted on its Web site: "We will no longer accept Star Alliance Upgrade Award requests at this time."