Star Alliance International Corp. · OTC:STAL
Star Alliance International — NBTA 2005, San Diego
49 slides from Star Alliance International's conference presentation, Aug 15, 2005
Slide 1: Star Alliance: The airline network for Earth
STAR ALLIANC The airline network for Earth.
Slide 2: General Media Update
General Media Update Christian Klick VP Corporate Office NBTA, San Diego, 15 August 2005
Slide 3: Why Star Alliance?
Why Star Alliance? The Star Alliance Approach The Star Alliance Customer Benefits Time for Questions
Slide 4: Why Star Alliance?
Why Star Alliance? Before Star Alliance, global travel was complex and inconvenient. Connections were uncoordinated, problematic and time consuming. Frequent Flyer Benefits, including lounge access, did not extend beyond individual airline offerings
Slide 5: A Global Solution
A Global Solution In 1997 Air Canada, Lufthansa, SAS, Thai Airways International and United responded to these needs. Together they established Star Alliance – the first global airline alliance. Eight years later the vision then continues to drive us today. "To be the leading global airline
Slide 6: A Global Solution
A Global Solution Star Alliance is still the leading and the largest global alliance offering 16 quality airlines a comprehensive global network top flight products and services delivered with a cultural flair a wide range of frequent flyer travel benefits
Slide 7: The Alliance World – Current Alliances
The Alliance World – Current Alliances Air Canada Aer Lingus Aeromexico Air New Zealand American Airlines Air France - KLM ANA British Airways Alitalia Asiana Airlines Cathay Pacific Continental Austrian Finnair CSA Czech Airlines bmi Iberia Delta Air Lines LOT Polish Airlines LAN Korean Air Lines L
Slide 8: However… not all Alliances are created equal!
The Alliance World In global aviation today, alliances play a key role two out of every three passengers fly with an alliance carrier Alliances respond to: The customers need to have global access, status and recognition The airline’s requirements to boost revenue and to reduce purchasing
Slide 9: IATA Key Statistics 2003
IATA Key Statistics 2003 Global Global Global Global Operating Operating Passenger Passenger Revenue Revenue Share Share Share Share 28.4% 28.4% 24.7% 24.7% 22.4% 22.4% 22.4% 22.4% 17.6% 17.6% 15.3% 15.3% Star Alliance in Pole Position State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 10: IATA Key Statistics 2003
IATA Key Statistics 2003 25.4% 25.4% Global Global Revenue Revenue Passenger Passenger 22.4% 22.4% Kilometre Kilometre Share Share 18.3% 18.3% Star Alliance in Pole Position 24.9% 24.9% Global Global Available Available Seat Seat 21.4% 21.4% Kilometre Kilometre Share Share 17.9% 17.9% State of Allia
Slide 11: Connecting The Networks
Connecting The Networks With WithSAA, SAA,Swiss Swissand andthe theRegional RegionalMembers Members theThe Star Alliance member carriers serve 795 Destinations in 139 Countries theStar StarAlliance Alliancenetwork networkgrows growstoto846 846destinations destinationsinin151 151countries! countries!
Slide 12: Star Alliance leads in Intercontinental Markets
Star Alliance leads in Intercontinental Markets Star 26% Oneworld 23% Skyteam 30% Others 21% Star 29% Oneworld 17% Skyteam 17% Star 17% Others 37% Oneworld 36% Star 30% Skyteam 19% Oneworld 23% Others 28% Skyteam 22% Others 25% Star 35% Oneworld 11% Skyteam 24% Others 30% Source: Capacity shares fro
Slide 13: Strong Homemarkets in Asia, Europe and South America
Strong Homemarkets in Asia, Europe and South America North America Europe Star 21% Star 17% Oneworld 16% Oneworld 14% Skyteam 31% Skyteam 12% Others 32% Others 57% Asia Star 22% Oneworld 4% Skyteam 5% Others 69% South America Oceania Star 23% Star 11% Oneworld 9% Oneworld 31% Skyteam 0% Skyteam 1% O
Slide 14: SkyTeam: Global Coverage
SkyTeam: Global Coverage 684 684destinations destinationsinin133 133countries countries State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 15: oneworld: Global Coverage
oneworld: Global Coverage 600 600destinations destinationsinin135 135countries countries State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 16: Star Alliance Presence in the domestic US Market
Star Alliance Presence in the domestic US Market More than 45,000 flights per week with the US, offering more than 3.7 million weekly seats to 320 destinations State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 17: US Airways / America West Cooperation
US Airways / America West Cooperation Access to PHX, LAS hubs 1000 daily departures North America Star 21 -> 25% Oneworld 16% Skyteam 31% Others 32% State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 18: The Star Alliance Network to and from the USA
The Star Alliance Network to and from the USA • 15 Airlines • 52,000 weekly flights • 4.7 million weekly seats • 308 destinations • 46 countries State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 19: The Star Alliance Approach
Why Star Alliance? The Star Alliance Approach The Star Alliance Customer Benefits Time for Questions State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 20: Alliance Success Factors
Alliance Success Factors Organisation Aligned business Aligned product Common objectives delivery processes infrastructure Integration 1 2 3 4 5 6 7 ... ... ... ... ... ... StarNet ... ... ... ... ... ... ... ... Time Common Common vision/ Common IT network and governance mission understandi
Slide 21: The Star Alliance Services GmbH
The Star Alliance Services GmbH A company jointly owned by the member airlines 69 people from 24 nations Managing a portfolio of Alliance Products and Services Using a single agreed process State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 22: The Way We Work
The Way We Work Star Alliance's dedicated organisation works closely with airlines: developing new products and services improving and building facilities at key hubs fine-tuning connection processes enhancing schedule coordination spreading valuable skills, training and operating efficie
Slide 23: Alliance Success Factors
Alliance Success Factors Organisation Aligned business Aligned product Common objectives delivery processes infrastructure Integration 1 2 3 4 5 6 7 ... ... ... ... ... ... StarNet ... ... ... ... ... ... ... ... Time Common Common vision/ Common IT network and governance mission understandi
Slide 24: Alliance Success Factors: Vision and Mission
Alliance Success Factors Vision the leading global airline alliance for the high value international traveller Mission contribute to long-term profitability of all members beyond their individual capabilities State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 25: Three Strategic Pillars
Three Strategic Pillars Contribute to the long-term profitability of the members beyond their individual capabilities through initiatives that focus on ... Customer Benefits Innovation/Leadership Synergies Capitalize on economies of Strengthen the value Foster innovation and scale, alliance bargaini
Slide 26: Alliance Success Factors
Alliance Success Factors Organisation Aligned business Aligned product Common objectives delivery processes infrastructure Integration 1 2 3 4 5 6 7 ... ... ... ... ... ... StarNet ... ... ... ... ... ... ... ... Time Common Common vision/ Common IT network and governance mission understandi
Slide 27: The Star Alliance Services GmbH
The Star Alliance Services GmbH Innovation Innovation Product Productdelivery delivery Operation Operation Joint Research Mileage Upgrade Awards Starnet Concepts Interline E-Ticket Conventions Plus Business Cases Move under one roof Connection teams State of Alliances – Jaan Albrecht, CEO Star Allia
Slide 28: Alliance Success Factors
Alliance Success Factors Organisation Aligned business Aligned product Common objectives delivery processes infrastructure Integration 1 2 3 4 5 6 7 ... ... ... ... ... ... StarNet ... ... ... ... ... ... ... ... Time Common Common vision/ Common IT network and governance mission understandi
Slide 29: StarNet
StarNet StarNet is designed to enable existing legacy systems to exchange information with minimum changes to those legacy systems State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 30: Star Alliance's Customer Benefits
Why Star Alliance? The Star Alliance Approach Star Alliance’s Customer Benefits Time for Questions State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 31: Interline Electronic Ticketing
New Products IT Solutions Interline Electronic Ticketing One paperless ticket for customer use Connections across the global network Costs savings per year min. 3 € per Ticket Network Common business rules and message standards developed Marketing / Sales Implementation completed August 2005
Slide 32: Self Service Check-in
New Products IT Solutions Self Service Check-in Customers can check-in Connections for any Star Alliance carrier from any Self Service Kiosk in the same terminal Network Trials underway in Marketing / Sales Munich, Tokyo and London Rollout to 40 airports in 2005
Slide 33: StarNet Application
StarNet Application IT Solutions Redemption Availability & Sell (RAS) allows member carrier employees to Connections Check award availability Network Access award itineraries Book Star Alliance award travel Marketing / Sales Shorter calls/better service …on any member carrier
Slide 34: Common IT-Platform
Common IT-Platform IT Solutions Long-time strategic goal of Star Alliance Development by Lufthansa and United Connections together with Star Alliance Services GmbH Technology partner: Amadeus Network State-of-the-art replacement of current reservations, Marketing / Sales inventory and
Slide 35: GDS Alternatives
GDS Alternatives IT Solutions Distribution fees represent a significant cost to the airline industry Connections Cost per Ticket $13 $4 $4 Network $5 Marketing / Sales $1 Fee Travel Gross Estimate per agency margin d cost ticket induced Members pay 2 billion US$ p.a. to GDSs The average GDS fe
Slide 36: Move Under One Roof
Move Under One Roof IT Solutions More specialised facilities to ease travel or provide assistance Connections Include baggage service facilities, check-in areas, lounges and more Network Ongoing Current Projects Shared Facilities Marketing / Sales Brussels Budapest London Copenhagen Frankfurt To
Slide 37: Star Connection Teams
Star Connection Teams IT Solutions Connections Network Better passenger and baggage service Marketing / Sales Lower cost for carriers Up & running in Chicago, Frankfurt, Los Angeles and Washington Year-to-date savings amount to over 5 million euro Munich Star Connection Center opened Augus
Slide 38: South African Airways and SWISS to join in 2006
South African Airways and SWISS to join in 2006 IT Solutions Connections Network South African Airways and SWISS will further Marketing / Sales improve Star Alliance’s network strength South African Airways brings Africa into the network Star Alliance will offer direct flights from the USA to
Slide 39: Regional Carriers
Regional Carriers IT Solutions Connections Network Extend Star Alliance benefits to more customers Marketing / Sales Provide Star Alliance service to more places, more often and faster Expand the Star Alliance network into more regions Enhance the members’ competitive position
Slide 40: More Frequent Flyer Flexibility
More Frequent Flyer Flexibility IT Solutions Aeroplan Airpoints Connections ANA Mileage Club Asiana Club Miles & More Network diamond club Miles & More Marketing / Sales Miles & More EuroBonus Kris Flyer Spanair Plus Victoria Royal Orchid Plus Mileage Plus Dividend Miles Smiles State of Alliances –
Slide 41: More Frequent Flyer Flexibility
More Frequent Flyer Flexibility IT Solutions A participant in any members programme can accumulate and redeem miles or points on any other member airline. Connections These count towards their tier status. Network Star Alliance facilitates award travel on any member carrier. Marketing / Sales
Slide 42: Star Alliance Gold and Silver Status
Star Alliance Gold and Silver Status IT Solutions Gold Status offers access to 620 airport lounges Connections worldwide (plus guest) priority airport stand-by Network priority boarding priority reservations wait listing Marketing / Sales priority baggage handling extra baggage allowance
Slide 43: Star Alliance Fare Products
Star Alliance Fare Products IT Solutions 11 global fare & discount products Round the World Fare Connections Circle Fares Airpasses Network Marketing / Sales State of Alliances – Jaan Albrecht, CEO Star Alliance
Slide 44: Star Alliance Airpasses & Special Fares
Star Alliance Airpasses & Special Fares IT Solutions Airpasses to combine an international Star Alliance flight with up to 10 regional flight coupons, starting from 354 USD*. Connections Network European North American Airpass Japan Airpass 10 coupons Airpass 10 coupons 790 USD* Marketing / Sales 5
Slide 45: Round The World Mileage Calculator
Round The World Mileage Calculator IT Solutions Round-the-world fares attractive to Business travel market Connections First alliance to offer a tool to Network easily build a round-the-world itinerary Marketing / Sales Total mileage calculated to determine the appropriate fare level for the i
Slide 46: Conventions Plus
Conventions Plus IT Solutions Alliance-wide offer for convention organizers Connections Targeting global meetings with Network 5000+ participants Marketing / Sales Over 420.000 delegates travelled in 2005 Total TotalDelegates Delegates 420000 420000 Product success D e le g a t e s D e le g
Slide 47: Corporate Plus
Corporate Plus IT Solutions Corporate Travel product for global organizations Connections One point of contact, one agreement Easier to manage global corporate accounts Network More automation of administrative functions Real-time tracking and reporting Marketing / Sales Competitive offe
Slide 48: Time for Questions
Why Star Alliance? The Star Alliance Approach Star Alliance’s Customer Benefits Time for Questions
Slide 49: Thank You
THANK YOU State of Alliances – Jaan Albrecht, CEO Star Alliance