Andrzej Jeziorski/SINGAPORE

Thai Airways International is considering quitting the Star Alliance as a result of rival Singapore Airlines' (SIA) entry into the group from April.

Thai president Thamnoon Wanglee has reportedly warned that it could lose $10 million a year in codesharing revenues that will have to be shared with SIA. Thamnoon is quoted as saying Thai opposed SIA's entry into the alliance, but was voted down.

Thai has played down the reports, saying its position in Star is being reviewed at the request of Credit Suisse First Boston (CSFB), the airline's financial adviser under its privatisation plan.

CSFB has "advised the airline to assess the advantages and disadvantages of Thai's membership" of Star and its long-term effects. It also suggests it should consider the advantages of joining another alliance, "especially when the airline is in the midst of privatising, with strategic partners and a public share offering being sought".

The Thai Government, which owns 93% of the airline, plans to sell an initial 23% stake, with 14% going to a foreign strategic airline partner, although target dates have repeatedly slipped. Thamnoon is reported to have said he will raise Star membership with SIA and alliance heavyweight Lufthansa later this month.

• Philippine Airlines says results for its financial year ending March 31 could be "better than expected" after exceeding performance targets for the last quarter. PAL had predicted a net loss of 656 million pesos ($16.4 million) for the year, but reported a net income of 240.4 million pesos for the quarter. It has faced three major hurdles since late 1999: the suspension of services to Taiwan, new low fares to Hong Kong for Filipino workers, and rising fuel prices.

Source: Flight International