United Strengthens Chindia Link

Stock quotes in this article: UAUA , LCC  

Meanwhile, Air India became the first Indian airline to join an alliance. It recently merged with Indian Air, the country's leading domestic carrier, and has orders for 111 new aircraft.

Experts say Star Alliance made significant gains this month, but ample opportunities remain for its two competitors, Oneworld and SkyTeam.

"If Star is roping in airlines in the two fastest growing markets in the world, it's huge," says consultant Robert Mann. "But there are lots of airlines in China, and there will be more names that will become important. In India, Air India and Indian Air historically have the biggest market share, but you also have fast-rising contenders like Jet, which will be a real prize for somebody."

Consultant Henry Harteveldt says Star ranked ahead of its counterparts even before its moves into China and India. United and US Airways(LCC Quote), another Star member, both benefit from the Chinese additions, he says. Not only will both have China routes once US Airways adds Philadelphia to Beijing service in 2009, but Air China already flies to Los Angeles, New York and San Francisco.

"The U.S. carriers can work to coordinate fares and schedules in San Francisco and Los Angeles," he says.

Among Oneworld carriers, AMR's(LCC Quote)American Airlines boosted its China access in January, moving into the Japan Air Lines terminal at Tokyo's Narita Airport.

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