Airline alliance
An airline alliance is an aviation industry arrangement between two or more airlines agreeing to cooperate on a substantial level. Alliances may provide marketing branding to facilitate travelers making inter-airline codeshare connections within countries. This branding may involve unified aircraft liveries of member aircraft.[1]
Contents
Rationale
Lua error in package.lua at line 80: module 'strict' not found. Benefits can consist of:
- An extended network, often realised through codeshare agreements. Many alliances started as only a codeshare network.
- Cost reduction from sharing of:
- sales offices
- maintenance facilities
- operational facilities, e.g. catering or computer systems.
- operational staff, e.g. ground handling personnel, at check-in and boarding desks.
- investments and purchases, e.g. in order to negotiate extra volume discounts.
- Traveler benefits can include:
- lower prices due to lowered operational costs for a given route.
- more departure times to choose from on a given route.
- more destinations within easy reach.
- shorter travel times as a result of optimised transfers.
- a wider range of airport lounges shared with alliance members
- faster mileage rewards by earning miles for a single account on several different carriers.
- round-the-world tickets, enabling travelers to fly over the world for a relatively low price.
Airline alliances may also create disadvantages for the traveler, such as:
- Higher prices when competition is erased on a certain route.
- Less frequent flights: for instance, if two airlines separately fly three and two times a day respectively on a shared route, their alliance might fly less than 5 (3+2) times a day on the same route. This might be especially true between hub cities for each airline. e.g., flights between Detroit Metropolitan Wayne County Airport (a Delta Air Lines fortress hub) and Amsterdam Airport Schiphol (a KLM fortress hub).
Issues
Lua error in package.lua at line 80: module 'strict' not found. The ability of an airline to join an alliance may be restricted by laws and regulations or subject to approval by authorities. Competition law issues must also be considered in some countries.
History
The first airline alliance was formed in the 1930s, when Panair do Brasil and its parent company Pan American World Airways agreed to exchange routes to Latin America. In 1990, the African Joint Air Services (AJAS) Accord between Tanzania, Uganda and Zambia led to the launch of Alliance Air in 1994 with South African Airways, Air Tanzania, Uganda Airlines and the governments of Uganda and Tanzania as shareholders.
The first large alliance had started in 1989, when Northwest Airlines and KLM agreed to codeshare on a large scale. In 1992, the Netherlands signed the first open skies agreement with the United States, in spite of objections from the European Union, which gave both countries unrestricted landing rights on the other's soil. Normally landing rights are granted for a fixed number of flights per week to a fixed destination. Each adjustment requires negotiating, often between governments rather than between the companies involved. The United States was so pleased with the independent position taken by the Netherlands that it granted antitrust immunity to the alliance between Northwest Airlines and KLM. Other alliances would struggle for years to overcome transnational barriers or still do so.
The Star Alliance was founded in 1997, which brought competing airlines to form Oneworld in 1999 and SkyTeam in 2000.
In 2010 Richard Branson, chairman of the Virgin Group, announced his intention to form a fourth alliance among Virgin branded airlines (Virgin Atlantic; Virgin America; and the Virgin Australia Holdings group of airlines).[2] Then in September 2011, Branson said that Virgin would join one of the existing alliances;[3] this idea was repeated in October 2012.[4] In December 2012, Delta Air Lines purchased Singapore Airlines' 49% stake in Virgin Atlantic for £224 million.
On February 14, 2013, it was announced that American Airlines and US Airways would merge, retaining the American Airlines name and would remain in the Oneworld alliance. US Airways participation in the Star Alliance lapsed. In 2012, in South America, LAN Airlines and TAM Airlines began their merger. In March 2014, with the merger complete, TAM left Star Alliance and became part of LAN in Oneworld.
On September 21, 2015, the Vanilla Alliance was formed between several airlines based in the Indian Ocean region, in order to improve air connectivity within the region. The founding members are Air Austral, Air Mauritius, Air Madagascar, Air Seychelles, and Int'Air Îles.
Alliances
Membership and market data for the largest airline alliances
Star Alliance[5] 27 members Founded 1997 |
SkyTeam[6] 20 members Founded 2000 |
Oneworld[7] 15 members Founded 1999 |
Rest of Industry (Largest Airlines) |
|
---|---|---|---|---|
Passengers per year | 653.81 million | 588 million | 512.3 million | 1.223 billion |
Countries | 193 | 177 | 155 | 204 (total countries) |
Destinations | 1,321 | 1,052 | 1,010 | 4,000 (total destinations) |
Fleet size | 4,561 | 4,634 | 3,428 | 11,082 |
Employees | 410,274 | 481,691 | 389,788 | |
Revenue Billion US$ | 177.42 | 186.331 | 143.231 | 1,651.325 (1,550) |
Daily departures: | 18,521 | 16,323 | 14,296 | |
Current Participants¹ | Members (JP) Adria Airways 2004 (A3) Aegean Airlines 2010 (AC) Air Canada Founder (CA) Air China 2007 (AI) Air India 2014 (NZ) Air New Zealand 1999 (NH) All Nippon Airways 1999 (OZ) Asiana Airlines 2003 (OS) Austrian Airlines 2000 (AV) Avianca 2012 (SN) Brussels Airlines 2009 (CM) Copa Airlines 2012 (OU) Croatia Airlines 2004 (MS) EgyptAir 2008 (ET) Ethiopian Airlines 2011 (BR) EVA Air 2013 (LO) LOT Polish Airlines 2003 (LH) Lufthansa Founder (SK) Scandinavian Airlines Founder (ZH) Shenzhen Airlines 2012 (SQ) Singapore Airlines 2000 (SA) South African Airways 2006 (LX) Swiss International Air Lines 2006 (TP) TAP Portugal 2005 (TG) Thai Airways International Founder (TK) Turkish Airlines 2008 (UA) United Airlines Founder |
Members (SU) Aeroflot 2006 (AR) Aerolíneas Argentinas 2012 (AM) Aeroméxico Founder (UX) Air Europa 2007 (AF) Air France Founder (AZ) Alitalia 2001–2009 as Alitalia-Linee Aeree Italiane, rejoined 2009 (CI) China Airlines 2011 (MU) China Eastern Airlines 2011 (CZ) China Southern Airlines 2007 (OK) Czech Airlines 2001 (DL) Delta Air Lines Founder (GA) Garuda Indonesia 2014 (KQ) Kenya Airways 2007 (KL) KLM 2004 (KE) Korean Air Founder (ME) Middle East Airlines 2014 (SV) Saudia 2012 (RO) TAROM 2010 (VN) Vietnam Airlines 2011 (MF) Xiamen Airlines 2012 |
Members (AB) Air Berlin 2012 (AA) American Airlines Founder (BA) British Airways Founder (CX) Cathay Pacific Founder (AY) Finnair 1999 (IB) Iberia Airlines 1999 (JL) Japan Airlines 2007 (LA) LAN Airlines 2000 (MH) Malaysia Airlines 2013 (QF) Qantas Founder (QR) Qatar Airways 2013 (RJ) Royal Jordanian 2007 (UL) SriLankan Airlines 2014 (S7) S7 Airlines 2010 (JJ) TAM Airlines 2014 |
Africa (AH) Air Algérie (MD) Air Madagascar (UU) Air Austral (HM) Air Seychelles (MK) Air Mauritius (W3) Arik Air (AT) Royal Air Maroc Asia (AK) Air Asia (NX) Air Macau (PG) Bangkok Airways (DZ) Donghai Airlines (LY) El Al (EK) Emirates (EY) Etihad Airways (G8) GoAir (GF) Gulf Air (HU) Hainan Airlines (6E) IndiGo (IR) Iran Air (9W) Jet Airways (7C) Jeju Air (JT) Lion Air (W5) Mahan Air (WY) Oman Air (PK) Pakistan International Airlines (PR) Philippine Airlines (BI) Royal Brunei Airlines (SC) Shandong Airlines (3U) Sichuan Airlines (SG) SpiceJet (9C) Spring Airlines (UK) Vistara (TR) Tigerair (IY) Yemenia Europe (EI) Aer Lingus (BT) airBaltic (JU) Air Serbia (U2) EasyJet (BE) Flybe (FI) Icelandair (A9) Georgian Airways (IG) Meridiana (ZB) Monarch Airlines (DY) Norwegian Air Shuttle (PC) Pegasus Airlines (FR) Ryanair (PS) Ukraine International Airlines (U6) Ural Airlines (UT) UTair Aviation (VS) Virgin Atlantic North America (AS) Alaska Airlines (F9) Frontier Airlines (HA) Hawaiian Airlines (B6) JetBlue (WN) Southwest Airlines (NK) Spirit Airlines (VX) Virgin America (WS) WestJet Australia (SB) Aircalin (PX) Air Niugini (TH) Air Tahiti Nui (FJ) Fiji Airways (VA) Virgin Australia South America (AD) Azul (G3) Gol Transportes Aéreos |
Future Members | ||||
Former Members | (AN) Ansett Airlines 1999–2001, defunct (KF) Blue1 2004-2012, now a member affiliate (BD) BMI 2000-2012, absorbed into British Airways[8] (CO) Continental Airlines 2009–2011, merged with United Airlines (MX) Mexicana de Aviación 2000–2004, joined Oneworld in 2009 (FM) Shanghai Airlines 2007–2010, merged with China Eastern Airlines and joined SkyTeam in 2011 (JK) Spanair 2003-2012, defunct (TA) TACA 2012-2013, merged with Avianca (JJ) TAM Airlines 2010-2014, joined Oneworld in 2014 (US) US Airways 2004-2014, joined Oneworld as an affiliate member of American Airlines (RG) Varig 1997–2007, ejected |
(CO) Continental Airlines 2004–2009, joined Star Alliance in 2009 (CM) Copa Airlines 2007–2009, joined Star Alliance in 2012 (NW) Northwest Airlines 2004–2009, merged with Delta Air Lines |
(EI) Aer Lingus 2000–2007, left voluntarily (CP) Canadian Airlines Founder, 1999–2000, acquired by Air Canada (MA) Malév Hungarian Airlines 2007-2012, defunct (MX) Mexicana 2009 (ceased operations in 2010, but is considered an inactive member) (US) US Airways 2014-2015, merged with American Airlines |
|
Quality | ||||
Average Star Rating[9] | 3.593 | 3.26 | 3.615 | 3.196 |
5-Star Airlines | 37.5% : All Nippon Airways, Asiana Airlines, Singapore Airlines | 12.5% : Garuda Indonesia [10] | 37.5% : Cathay Pacific, Malaysia Airlines, Qatar Airways | 12.5% : Hainan Airlines |
4-Star Airlines | 30.556% | 13.889% | 11.111% | 44.444% |
3-Star Airlines | 11.864% | 11.864% | 5.085% | 71.186% |
2-Star Airlines | 0% | 0% | 0% | 100% |
1-Star Airlines | 0% | 0% | 0% | 100% |
Notes
- In 2005, SkyTeam launched its Associate Program, whereby existing codeshare agreements (such as with Continental Airlines and Copa Airlines) can be integrated into SkyTeam's marketing (shared loyalty programs, etc.).[11]
- On June 19, 2008, Continental Airlines announced that it would be leaving SkyTeam on October 24, 2009. It began to participate in Star Alliance on October 27, 2009 as part of a codesharing agreement with Star Alliance charter member United Airlines (Continental Airlines cut its codeshare ties to Delta Air Lines and Northwest Airlines).[12][13] United Airlines and Continental Airlines merged in 2010.
- As the table shows, the three alliances combined fly 58.7% of all passengers.
- Avianca and TACA, listed as separate airlines, are considered as one member of Star Alliance.[14]
- Olympic Air joined after merging with Aegean Airlines. It is now an affiliate of Star Alliance.
- US Airways merged with American Airlines. The airline joined Oneworld as an affiliate member on March 31, 2014.[15]
Notes and references
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ http://www.airlinequality.com/news/garuda-indonesia-is-certified-as-a-5-star-airline/
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Continental Airlines – Proud member of Star Alliance. Continental.com (2009-10-27). Retrieved on 2011-03-04.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
External links
Wikivoyage has a travel guide for [[Wikivoyage:Airline alliances#Lua error in Module:Wikidata at line 863: attempt to index field 'wikibase' (a nil value).|Airline alliances]]. |
- Oneworld: http://www.oneworld.com
- SkyTeam: http://www.skyteam.com
- Star Alliance: http://www.staralliance.com