UPDATE: Star Alliance Names Mark Schwab As New Head
December 14 2011 - 7:26AM
Dow Jones News
A United Airlines' (UAL) executive has been appointed to head
the global Star Alliance grouping, marking a subtle shift in the
industry's balance of power toward U.S. carriers.
Mark Schwab, United's senior vice president for alliances, was
named chief executive of the 28-member Star, the largest of three
global pacts formed to coordinate marketing and route networks.
Schwab replaces Jaan Albrecht at Star, which like the rival
Oneworld and SkyTeam groupings, has tended to be led by European
airline executives.
Albrecht moved to become head of Austrian Airlines, which is
controlled by Deutsche Lufthansa AG (DLA.XE), a leading member of
Star alongside United Continental Holdings Inc. (UAL) and All
Nippon Airways Co. (9202.TO, ALNPY).
The recent granting of a single operating certificate for United
Continental makes it the world's largest airline by capacity,
lifting it above SkyTeam member Delta Air Lines Inc. (DAL).
American Airlines' parent AMR Corp. (AMR), a member of the Oneworld
grouping, ranks third.
"This appointment follows a worldwide search resulting in the
comfortable situation of having several high calibre candidates to
choose from. Mark convinced us with his vast industry know-how and
his tremendous international experience," said Rob Fyfe, chief
executive of Air New Zealand Ltd. (AIR.NZ) and chairman of the
alliance's chief executive board. Schwab's appointment continues
leadership changes among the global alliances in the past year.
Bruce Ashby became CEO of New York-based Oneworld last December,
and Michael Wisbrun took charge of Amsterdam-based SkyTeam in
June.
The three groupings are still actively courting new members
despite accounting for the majority of international airline
traffic, with all eyeing potential partners in Latin America,
India, China and Russia.
-By Doug Cameron and Mia Lamar, Dow Jones Newswires;
312-750-4135; doug.cameron@dowjones.com
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