Shanghai Airlines is expected to become a member of the Star Alliance in 2007, becoming the first Chinese carrier to join the world's largest affiliation of airlines.
Jaan Albrecht, chief executive of the Star Alliance, said in Shanghai that Shanghai Airlines needed to make improvements to meet the operational standards required by the alliance before it could join.
Star Alliance and Shanghai Airlines have signed a memorandum of cooperation, under which the alliance will help Shanghai Airlines to make improvements and adjustments in the fields of sharing information with other member carriers, ticketing systems, safety, legal affairs and training.
Shanghai Airlines applied for membership in November 2004, and became an observer of the 18-member alliance last November.
The Star Alliance was founded in 1997 by Thai Airways, Lufthansa of Germany, Air Canada, Scandinavian Airlines and United Airlines of the United States.
It has expanded to include Air New Zealand, All Nippon Airways of Japan, Asiana of the Republic of Korea, Austrian Airlines, and Singapore Airlines with Swiss International Airlines and South African Airways joining last month.
Another Chinese carrier, Air China, has been in talks to join the alliance, Albrecht said.
The Star Alliance operates more than 15,500 flights daily to 842 destinations in 152 countries.
Zhou Chi, chairman of Shanghai Airlines, said the airline had a strategy to explore the international market. "Joining the Star Alliance is expected to improve the competitiveness of Shanghai Airlines on the world market."
Shanghai Airlines operates a dozen international routes to Japan, the Republic of Korea, Germany, Vietnam and other countries.
As a member of the Star Alliance, Shanghai Airlines would enable its customers to combine frequent flyer programs with other carriers, share airport lounges and enjoy convenient transfers and other services.
(Xinhua News Agency May 12, 2006)
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