After months of discussion, US Airways and Lufthansa today announced a Memorandum of Understanding calling for a long-term strategic alliance. It is a likely precursor to US Airways' participation in Lufthansa's Star Alliance, anchored in North America by US Airways' domestic partner United Airlines. Though no timetable publicly has been laid out, US Airways executives this spring repeatedly indicated that a Lufthansa partnership was in the offing and that code sharing could begin as early this fall.
"We are looking forward to working with US Airways to improve the travel options of our customers by enhancing access to both parties' extensive networks, code sharing, joint promotions and such customer services as through-checkin, lounge access and mileage accrual," said Lufthansa chairman and CEO Juergen Weber.
US Airways brings to Lufthansa a base of 4 million frequent flyers and a strong presence on the East Coast, including hubs in Charlotte, Philadelphia and Pittsburgh and shuttle operations in the Northeast corridor. For its part, Lufthansa, one of the world's largest carriers, offers an extensive route structure in the German market and a comprehensive global network. With United as a mutual partner, the two carriers have an opportunity to develop traffic feeds and integrate corporate contracts. United already has constructed bilateral joint corporate programs with both Lufthansa and US Airways. A United-Lufthansa transatlantic revenue-share program kicked in this January.
Meanwhile, CEOs of the Star Alliance are scheduled to meet in Washington later this month. They likely will extend a formal invitation for US Airways to join their table. US Airways officials told
Business Travel News the carrier could be ready to join Star by year-end
(BTN, April 28).