A distinctive feature of the Chinese economy is that most of its dominant companies, such as the main airlines, are effectively arms of the government but also compete with each other. That is part of the Communist Party's idea of “socialism with Chinese characteristics.”

Taiwan’s EVA Airways, working to join Star Alliance by June, also aims at early membership for Uni Airways to strengthen its short-haul subsidiary against competition from budget carriers. The hope is to bring Uni into the alliance well within three years of EVA’s joining, says EVA EVP Austin Cheng. Merging Uni’s frequent flyer program with those of the other Star members would be an especially desirable move for warding off competition from low-cost airlines, he adds.

Star Alliance CEO Mark Schwab sees no value adding a Middle East airline to its roster and rejects the possibility that Virgin Atlantic is a potential candidate. “We at Star Alliance have good, strong services into the [Persian] Gulf already,” partly thanks to the proximity of Turkish Airlines and Egyptair, Schwab said during a ceremony marking Shenzhen Airlines’ membership with the global alliance. “When we look at the airlines that are based there, we don’t see what they would add to the alliance.”