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Juneyao Airlines considers joining a global alliance: it could fill Star Alliance's gap in Shanghai

Analysis

In 2010 the Star Alliance lost its member in China's financial heart - Shanghai Airlines - when SkyTeam member-elect China Eastern merged with Shanghai Airlines. Privately owned Juneyao Airlines is based in Shanghai and plans to decide by the end of 2016 whether to join a global alliance. Partnerships could add impetus to Juneyao's nascent plans to fly long haul by the end of the decade.

Any decision to join an alliance would almost certainly result in Juneyao selecting Star. Star presents the greatest opportunity for Juneyao to receive connecting passengers. Long haul Star capacity into Shanghai Pudong is larger than the combined capacity from oneworld and unaligned airlines (and some of them, like Qantas, are cosying up to China Eastern). Juneyao is ruling out being in the same alliance as China Eastern, which is currently SkyTeam (and perhaps in the future - oneworld). Juneyao's network is complementary to existing Star members Shenzhen Airlines and Air China and the airline codeshares with Air China, which for a few years has wanted Juneyao to join Star.

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