Four airlines form alliance

NEW YORK. Delta Air Lines, Air France, Aeromexico and Korean Air have announced an alliance on Thursday that will stretch across three continents and attempt to compete with pacts already formed by rivals. The airlines will share perks, pool frequent flyer miles programmes and coordinate schedules in the alliance, called ``Skyteam.''

Currently, the strongest group of carriers is the Star Alliance, which includes United, Lufthansa and Singapore Airlines. For passengers, the advantage of flying an airline that participates in an alliance is the convenience.

Passengers need to book only one ticket and check in baggage once, regardless how many times they change carriers. ``We recognise that Star Alliance is the best-functioning alliance today,'' Mr. Leo F. Mullin, Delta's chief executive officer said.

Although Skyteam is entering the game at a later stage than its major competitors, analysts said it should be able to compete effectively with United's Star Alliance, American's One World, and Continental's Wings Alliance.

But Skyteam could face problems in Asia, where it does not have a strong hub. Neither Delta nor Air France has booked passengers on Korean Air since April 1999, when safety issues led both airlines to suspend dealing with the Asian carrier.

- New York Times

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Section  : Business
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