SriLankan Airlines Bound for Oneworld

In a move to strengthen its position in the Indian sub-continent and to secure greater network access into southern India, the Maldives and Sri Lanka, oneworld has announced that SriLankan Airlines will join the alliance late next year after it was elected as a designate member. Its proposed entry was announced this week as executives of the alliance's member airlines gathered for a meeting of the group's Board, on the sidelines of the International Air Transport Association (IATA) 2012 World Air Transport Summit.

The Colombo-based airline will now begin a 12- to 18-month implementation programme which will be sponsored by existing alliance member Cathay Pacific. SriLankan Airlines already has a codeshare arrangement with fellow alliance designate member Malaysia Airlines and this week has confirmed that it has an agreement in principle with fellow members Royal Jordanian and S7 Airlines to introduce similar partnerships.

“With the world airline industry increasingly focused on alliances, SriLankan has carried out in-depth analysis of the options open to the airline as we enter this latest phase of our development. oneworld is very clearly the best option for us,” said Nishantha Wickremasinghe, Chairman, SriLankan Airlines. “Joining the alliance will help put SriLankan more firmly on the global aviation map and vastly improve Sri Lanka's connections with the rest of the world, with all that means for our country's vital tourism industry.”

SriLankan Airlines is currently in the process of expanding its operations since peace returned to its home country three years ago and plans further substantial expansion to its fleet and network in the next few years. Its fleet has now grown to 21 aircraft which carried 3.5 million passengers last year between its Colombo base and 34 destinations in 22 countries across Asia, Europe and the Middle East, including the oneworld hubs of Hong Kong, London Heathrow, Kuala Lumpur, Moscow Domodedovo and Tokyo Narita.

Although Colombo is already a point on the oneworld network there is currently only limited connectivity: Cathay Pacific serves the Sri Lankan capital on a daily basis from Hong Kong, while Royal Jordanian has a three times weekly rotation from Amman. Future oneworld member Malaysia Airlines also serves the market and efforts will certainly now be taken for other alliance members to introduce links into the country.

Alongside its home market, SriLankan Airlines also provides access into the Maldives, a popular high-end leisure market from both Europe and Asia. The flag carrier is currently the largest international operator into the Maldives archipelago and will provide alliance members with new connectivity into a high-yield market. However, it is SriLankan Airlines strong presence in southern India that will likely bring particular benefits to oneworld and its entry to the alliance will bring three further destinations to its route map - Kochi, Tiruchirapalli and Thiruvananthapuram.

According to oneworld, the election of SriLankan Airlines to designate member status enhances the alliance’s network to “some 850 destinations in more than 150 countries, served by a combined fleet of almost 2,500 aircraft operating some 9,000 flights and carrying almost a million passengers every day, generating annual revenues of more than US$ 100 billion.”

In the table below we highlight SriLankan’s largest international network points by seat capacity this month…

In a further boost to oneworld, reports claim that the new South American giant LATAM, which will be formed from the merger of LAN Airlines and TAM Airlines will likely select the alliance as its future partner, as has been heavilly mooted. LAN has been a member of oneworld since 2000, while TAM is a relative recent arrival in the rival Star Alliance, joining in May 2010. Since the proposed merger was first revealed the burning question has been which global partner it would select once the operators joined forces, however the Chief Executive Officer of Lufthansa, Christoph Franz, revealed this week to industry magazine Aviation Week that “there have been clear signals that TAM will get out [of the Star Alliance].”

Final approval for the merger of the two carriers is still pending with the planned share swap being extended to June 22 after the transaction failed to meet completion requirements earlier this month. The possible loss of TAM Airlines will be a big blow for Star, however, it will shortly increase its presence in Central and South America following the entry of Avianca/TACA and Copa Airlines into the grouping this month.

Meanwhile, SkyTeam has confirmed its own continued ambitions to secure new partners in the Indian and Brazilian markets. The alliance said this week that it “continues to monitor options” to create further market access in “the white spots Brazil and India” as well as other relevant areas to expand its network.

After recently celebrating the integration of its first Middle Eastern partner, Saudi Arabian flag carrier Saudia, the alliance has revealed confirmed entry dates for three further airlines. Middle East Airlines (MEA) will join on June 28, 2012 and Aerolíneas Argentinas is scheduled to join the alliance on August 29, 2012 as the first South American member, strengthening its network in the southern hemisphere. Additionally, on November 15, 2012, Xiamen Airlines, based in the flourishing Southeast China region, will further consolidate the alliance’s position in the country. Garuda Indonesia will also join SkyTeam although it is unlikely to be formally accepted until early 2014. The long lead time is due to the Southeast Asian carrier selecting a new IT platform and the time necessary to migrate to the new system.