With the integration of China Eastern and its subsidiary Shanghai Airlines this year, the airline alliance Skyteam will become the largest in mainland China. Skyteam was already present with its partner China Southern, whose main operational hub is in Guangzhou. Skyteam has also announced that the Taiwanese national carrier, China Airlines (which has already close ties to China Eastern) will join by 2012. The alliance will then have use gateways in China ‑ Guangzhou, Shanghai, Beijing and Taipei ‑ as its main international hubs there. According to Air France-KLM Director General Pierre Henri Gourgeon, Skyteam could represent between 40% and 50% of capacity offered in the Chinese market.
The alliance now has a strong presence throughout Asia. Korean Air was a founding member of the alliance, and through its hub in Seoul it helped the alliance to assert its presence in Northeast Asia, especially in Japan. US carrier Delta Airlines is also operating an important regional hub at Tokyo Narita airport. But 2010 was a turning point for Skyteam’s strategy in Asia. Vietnam Airlines became the first partner in Southeast Asia in June, bringing an additional network of 20 new destinations in the region. In October, the alliance announced that it had accepted the candidacy of Garuda, Indonesia’s national carrier. The airline is due to join the grouping by 2012, helping to boost Skyteam’s presence across the continent: it is estimated that it will then have a market share of 25%, compared to a current share of 13%.
