Air Canada is within weeks of awarding a firm order for 100 new
aircraft, making it the first carrier of a group of four Star Alliance
members that plan to buy planes of 70-110 seats that will have
standardized equipment and configurations.
Star CEO Jaan Albrecht told a DAILY editorial meeting in Washington that
the airline has not settled all the details on the order, but a decision
is "about to come." The three other Star partners --Lufthansa, Austrian
and SAS -- will realistically not place their orders until early 2004,
Albrecht said. The expected orders come after the airlines, in
cooperation with Star executives, worked for months to agree on a "Star
standard" for the aircraft for everything from engines to avionics to
coffee machines.
Air Canada CEO Robert Milton last month in Montreal predicted the order,
one of its largest in recent history, might be signed by the end of
October (DAILY, Sept. 12). The airline is choosing among the Airbus
A318, Boeing 717, Bombardier CRJ and Embraer 170. Air Canada is
considering splitting the order, which Albrecht acknowledged is an
option that has been discussed by the other three Star airlines.
While signaling which orders it might place in the near future, Air
Canada might not sign the final deal until it emerges from the
equivalent of Chapter 11 protection. Albrecht said all the Star airlines
will place their orders individually, and winning financing for the
orders will be up to each carrier.
Separately, Albrecht told the International Aviation Club that Star's
leadership position "will not change" despite Swiss joining oneworld and
the Air France/KLM merger. He believes competition between alliances
will grow stronger, "a situation that I would call an interesting
challenge, rather than a threat." Next year, Star will have 27% of the
world's traffic, followed by SkyTeam with 23% and oneworld with 19%,
including their recent additions.
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