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Shanghai Airlines to end Star Alliance ties

By Chen Qide (China Daily Shanghai Bureau)
Updated: 2010-07-29 14:55
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Shanghai Airlines (SA) has agreed to terminate its membership in Star Alliance by the end of October as a result of its recent merger with China Eastern Airlines, according to a statement from the airline.

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The statement released Thursday (July 29) said all customer benefits provided will last until Oct 31, 2010.

"We will continue to offer all Star Alliance customer benefits, and its passengers will enjoy their worldwide alliance benefits until Oct 31," said Xia Benjian, an SA spokesman.

These benefits include the collection and redemption of miles, participation in various Star Alliance fare products as well as the provision of extra benefits to Star Alliance Gold and Silver customers.

Shanghai Airlines, together with Air China, was given membership in Star Alliance, the world's largest airline alliance, in December 2007 after three years of negotiation.

Two years later, the airline was merged with China Eastern Airlines, China's third biggest carrier, which bought SA via a 9 billion-yuan share swap and won a market share of 50 percent in China's financial hub.