BANGKOK -- The lingering impact of Sept. 11 is prompting airline companies to "integrate deeper and quicker" into the safety of alliances, and these groups will form the basis of future competition in the industry, a top airline executive said in a recent interview with Japan Times.

"Competition now will be among alliances, not really among carriers," said Jaan Albrecht, CEO of Star Alliance, the world's largest airline group. Albrecht was in Bangkok to explain Star Alliance's strategies and views in the world airline industry.

Alliances enjoy a big advantage over individual airlines by virtue of code-sharing, which enables member airlines to expand their networks and brand awareness simply by letting passengers from the other airlines share their flights.

But the currently harsh climate for air travel has forced Star Alliance to depend on more than simply code-sharing.

Since Sept. 11, the group has taken a number of steps to reduce operational costs, including joint procurement of fuel, technical equipment and in-flight entertainment equipment, Albrecht said. Star members are even considering jointly developing passenger seats -- one of the few key selling points an airline uses to distinguish itself from its competitors.

"Business travelers and tourists are more internationally oriented," Albrecht said. "They need to have the best way of transportation internationally. The best and perhaps the only way of doing this efficiently is to join forces with partners all around the world."

Globalization is the main force behind the movement toward larger airline alliances, Albrecht explained. But he also predicted that low-cost carriers specializing in more local operations would be another survivor of these difficult times.

"We think (low-cost carriers) will definitely have places in their geographical areas," said Albrecht, who joined Star in May after serving as CEO at Mexican cargo carrier Aeromexpress.

The impact of the Sept. 11 attacks has been huge. UAL, the holding company of United Airlines and a core member of Star Alliance, posted its largest-ever net loss of $2.145 billion for the business year ended in December.

But the movement toward larger alliances started long before the terrorist attacks.

Since the launch of Star Alliance in 1997 with six members, three other major airline groups have been established: oneworld, SkyTeam and the KLM-Northwest-Continental group.

Star Alliance now consists of 12 member airlines, including Lufthansa, United, Thai Airways International, Singapore Airlines, and All Nippon Airways.

Hoping to add a new link to its global network, Star Alliance is negotiating with "several" Chinese airlines that would give Star greater access to a rapidly growing market with huge economic potential.

None of the major air alliances has a Chinese partner.

One of the key criteria for choosing a Chinese partner is advanced information technology infrastructure, Albrecht said. Integrating IT systems, such as for online reservations, with other companies would require a huge investment and much time, Albrecht said.

Star Alliance's top executives will hold their next semiannual meeting in Shanghai in May, which would provide the perfect opportunity to announce a new Chinese partner.

But Albrecht remained cautious, saying that selection talks could take several months.

On the other hand, if Star does find a new member, Albrecht hinted that it would be announced either in May, or at the following meeting -- in November.