Star invites Copa and Avianca-TACA to join alliance

Copa 737-800.

Star Alliance took yet another step in its dynamic expansion Wednesday by announcing it has officially invited Avianca-TACA and Copa Airlines to join the grouping. 

“The addition of these two quality airline groups concludes a strategic process which increases the alliance’s footprint in the vibrant, growing economies of Latin America,” Star CEO Jaan Albrecht said at a press conference in Miami. The two airline groups will add 46 new destinations and five new hubs in Latin America to what Albrecht called “Star’s worldwide web.”

Avianca A319. Photo: By Rob Finlayson.

Copa Airlines and Copa Airlines Colombia, formerly Aero Republica, operate hubs in Panama City and Bogota and the Avianca-TACA group operates hubs in Bogota, San Salvador, Lima and San Jose (Costa Rica) (ATW Daily News, Oct. 7).

Albrecht told ATW that the inclusion of Copa and Avianca-TACA should not infer that Star is anticipating Latin American member TAM Airlines’ departure from the group but rather as the culmination of a strategic process to extend Star’s reach in the region.

The Brazilian carrier joined in May but in August announced it reached a merger agreement in principle with oneworld member LAN Airlines, opening the possibility for the new merged entity to move to Star or to oneworld (ATW Daily News, Oct. 21). “Our clients told us that we had a white spot in our coverage, [namely] in Central America, the Caribbean and the northern and western regions of South America. Copa and Avianca-TACA’s networks are complementary to TAM’s,” Albrecht noted.

He recognized that the pending merger of TAM and LAN does create “new challenges” and that it is the first time there is a cross-alliance merger in Latin America. But, he stressed, “We are aggressively looking forward to their discussions and we will make the best proposal.”

He also noted that the wooing of Copa started over a year ago with the addition of Continental Airlines, which subsequently merged with United Airlines. Copa left SkyTeam together with its partner CO in October last year (ATW Daily News, Oct. 28, 2009). The “new” United will mentor Copa’s entry process and Lufthansa will support Avianca-TACA. Both groups said they anticipate they will become full members in 18 months.

“Copa Airlines’ membership in Star Alliance will enhance our global reach as we implement strong partnerships with its 27 carriers and link Latin America’s most efficient hub, our Hub of the Americas in Panama City, to Star Alliance´s vast global network,” said Copa CEO Pedro Heilbron. Copa Airlines and Copa Airlines Colombia  serve 52 destinations in 25 countries aboard 34 737NGs and 26 E-190ARs.

For Avianca-TACA CEO Fabio Villegas, the group’s joining of Star Alliance is “a determining factor for our competitive strategy that will enable us to leap forward in terms of the scope and scale of the benefits provided to our passengers.” Avianca-TACA, which consolidated several smaller Latin American carriers, agreed to a strategic merger in October 2009, creating a combined network serving some 128 destinations in the Americas and Europe (ATW Daily News, Feb. 3). The group operates a fleet of 118 aircraft and expects to carry more than 17.9 million passengers this year. Revenue is over $3 billion. TACA’s initial request for Star membership dates back to 2008.