S7 Airlines, Russia's leading domestic air carrier, has officially joined the Oneworld global alliance, the company said in a statement on Monday.
S7 Airlines has become the second Russian company to join an international air alliance. Aeroflot, the country's largest carrier, entered the global Sky Team alliance in 2006.
Oneworld consolidates the world's largest and most successful airlines, including American Airlines, British Airways, Cathay Pacific Airways, Finnair, Iberia, Japan Airlines, LAN Airlines, Malev Hungarian Airlines, Mexicana, Qantas and Royal Jordanian and also about 20 affiliated companies.
ADVANTAGES FOR PASSENGERS
From November 15, participants of the S7 Priority program will be able to earn and spend miles, flying with other participants of the Oneworld alliance, S7 said in a statement.
Oneworld's network will expand to 750 destinations in 150 countries with the participation of S7 Airlines, while all the flights will be carried out by 2,250 aircraft, which at the same time carry out almost 8,500 flights daily and transport more than 300 million passengers annually. The alliance's annual profit will reach $85 billion.
S7's participation in the Oneworld alliance will allow the company to offer a global network for passengers, and will be serviced by the world's well-known airlines, the company's press-service quoted Vladimir Obyedkov, S7 Airlines chief executive officer, as saying.
"Participation in the alliance will also strengthen us financially through revenues from passengers transferring to our network from our Oneworld partners and the cost reduction opportunities the alliance offers," Obyedkov said.
ANALYST OPINIONS
S7 Airlines' participation in the Oneworld alliance will let it advance to a new development level, boost the passenger flow and raise competitiveness, according to several analysts in a RIA Novosti poll.
Oleg Panteleyev, head of Aviaport analytical department, said S7's participation in Oneworld would raise the company's competitiveness as it would offer passengers all the advantages the alliance had. "Besides, membership in the alliance means a broader network with access to the alliance's basic airports, unified incentive system for frequent flyers," Panteleyev said.
Panteleyev said that Air Berlin planned to enter the Oneworld alliance in 2011. S7 Airlines and Air Berlin had earlier signed a code sharing agreement. The alliance will get 10% of passengers due to that agreement, Panteleyev added.
Alexei Sinitsky, Air Transport Observer editor-in-chief, said that Oneworld's standards would raise S7 Airlines to a new level.
"Undoubtedly, every time an airline plugs route nets, it generates passenger flows, plus different beneficial programs for frequent flyers and several marketing programs. These measures are aimed at attracting passengers, which will raise the company's passenger flow," the analyst said.
S7 Airlines currently has to increase the amount of international commercial air routes, he added.
"Aeroflot had such routes before joining Sky Team that is why it integrated into the alliance easily. S7 Airlines integration into Oneworld is more complicated as the company has not enough commercial rights for commercial flights. It has to close more code sharing agreements and expand its commercial rights," Sinitsky said.
MOSCOW, November 15 (RIA Novosti)
