Network Benefits 2003 1999 2000 1997 May 14 Air Canada, Lufthansa, SAS, Thai Airways International and United Airlines launch the Star Alliance network. October VARIG Brazilian Airlines joins the Star Alliance network. March Ansett Australia and Air New Zealand join the Star Aliance network. October With an official Launch Event in Tokyo, ANA joins the Star Alliance network and Singapore Airlines officially gains Observer Status to join the Alliance. March The Austrian Airlines Group, comprising Austrian Airlines, Lauda Air and Tyrolean Airways becomes the 10th member of Star Alliance. April Singapore Airlines joins Star Alliance. July British Midland and Mexicana join Star Alliance. March Asiana Airlines joins the Star Alliance network. April Spanair joins the Star Alliance network. October LOT joins Star Alliance. May – US Airways application approved
The Star Alliance Network continues to grow. Network Benefits Destinations 55 Fleet 50 longhaul 5 shorthaul 45 Annual Passengers 2.8m Annual pax revenue $553m Employees 4,100
Further integration of services (i.e. Facilities in airports, services in regions, IT systems, etc)
Development of tools to measure effectiveness of alliance (metrics). i.e. Measure which passengers were brought in as a result of alliance. Also, measure the intangible benefits that the alliance exudes across the board.
Geographic :customers are located globally with varying wants and needs or behaviors and the organization attempts to exploit this by providing airline services to major cities/ routes evidenced.
Psychographic – attempts to capture what is driving the customer’s behavior, such as values. variations of cabin classes (First, Business and Executive Economy) to meet the product needs and wants of people.
Behavioral – Segmenting the market based on observable issues on consumer behaviour when consuming the products. Characteristics include frequency of consumption, buyer readiness and commitment. The corporate market tends to be a frequent flyer that could gain benefits from SIA’s Frequent Flyer program (KrisFlyer and PPS Club), in return for consumer loyalty to the airline.