Grupo TACA and Copa Airlines, two rivals based in El Salvador and Panama, respectively, are both being encouraged to join the Star Alliance by existing members.

Star has been talking to the carriers since earlier this year to fill a hole in coverage in Central America (DAILY, May 12). Executives of current alliance members recently have been trying to convince the two that both of them have a future in the alliance in spite of their long-time rivalry and a limited network overlap. An agreement is expected to be reached before yearend, alliance sources say.

TACA CEO Roberto Kriete recently discussed the issue with Star executives, among them CEO Jaan Albrecht, but no deal has yet been reached. Star’s new North American member Continental has close ties with Copa and is keen to get the partner airline onboard as well.

Alliance sources said TACA has become an even more attractive partner for Star after its decision to merge with Avianca (DAILY, Oct. 16). Avianca’s indirect links to Brazilian carrier Ocean Air — a competitor for Star member-elect TAM — are not seen as a major issue, said the executives.