Air China, Shanghai Airlines Join Large Code-Share Group

The Chinese are coming... and they'll be flying on airliners bearing the Star Alliance logo.

The Wall Street Journal reports Air China and Shanghai Airlines are the newest members of the global airline code-sharing network. The move gives both carriers greater access to markets outside the Chinese mainland, and easier access for travelers flying to and from China.

"By joining with 17 other leading airlines, Air China and Shanghai Airlines enhance their abilities to compete, creating, for them, a 'win-win' situation," Air China Chairman Li Jiaxiang said this week. "They are better placed to service their customers with higher-value services."

Formal adoption into the Star Alliance network -- which also includes such carriers as United Airlines, Singapore Airlines and Lufthansa -- also gives the two fledgling airlines additional credibility, at a time when China is working to bolster its international image. Based in Beijing, Air China is the country's flag carrier, while smaller Shanghai Airlines is growing quickly.

The move also benefits Star Alliance, by filling in a "hole" in its network over Asia. Prior to the announcement, the only Chinese airline enrolled in a code-share alliance was China Southern Airlines. The Guangzhou-based carrier is part of the SkyTeam network, along with Delta Air Lines and Air France.

Carriers that are part of an alliance may sell seats on one another's aircraft, and offer frequent-flyer miles for trips on member airlines. Often, code-share partners also share ticket counters and passenger lounges, helping to trim costs.

The news leaves China Eastern Airlines, based in Shanghai, as the only one of the country's three largest airlines to not be a member of an alliance.

Coincidentally, there's also only one code-share network still lacking a Chinese partner -- the oneworld alliance -- though that group does include Cathay Pacific, which is a major shareholder in Air China.

Meanwhile, Star Alliance is looking to next expand into India, and was expected to select its first Indian member airline by the end of this week. Flag carrier Air India and privately-held Jet Airways are each seeking approval to join the network.

FMI: www.staralliance.com, www.airchina.com, www.shanghai-air.com