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Airline alliance
Cooperation agreement between two or more airlines From Wikipedia, the free encyclopedia
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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]
In 2015, Star Alliance was the largest with 23% of total scheduled traffic in revenue passenger kilometres (RPKs)/revenue passenger miles (RPMs), followed by SkyTeam with 20.4% and Oneworld with 17.8%, leaving 38.8% for others.[2] In 2019, by number of passengers, Star Alliance was leading 762 million,[3] followed by SkyTeam (630 million)[4] and Oneworld (535 million).[5]
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Rationale
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Benefits can consist of an extended network, often realised through codeshare agreements. Many alliances started as only codeshare networks. Cost reductions come from sharing operation facilities (e.g. catering or computer systems), operation staff (e.g. ground handling personnel, at check-in and boarding desks), investments and purchases (e.g. in order to negotiate extra volume discounts).[6] Traveler benefits can include lower prices due to lowered operational costs for a given route, different times to choose from, more destinations within easy reach, shorter travel times, more options of airport lounges shared with alliance members, fast track access on all alliance members if having frequent flyer status, faster mileage rewards by earning miles for a single account on several different carriers, round-the-world tickets, enabling travellers to fly over the world for a relatively low price.[7]
Airline alliances may also create disadvantages for the traveller, such as higher prices when competition is erased on a certain route or 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).[8][9][10]
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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.[citation needed]
The first large alliance began in 1989, when Northwest Airlines and KLM agreed to large-scale codesharing. 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 negotiations, often between governments rather than between the companies involved. In return, the United States granted antitrust immunity to the alliance between Northwest Airlines and KLM. This alliance continues to exist today (as of 2025) with KLM as a SkyTeam member and Northwest's successor airline Delta also being a member. Other alliances would struggle for years to overcome the transnational barriers and lack of antitrust immunity, and still do so.[citation needed]
On May 14, 1997, an agreement was announced forming the Star Alliance with five airlines on three continents: United Airlines, Scandinavian Airlines, Thai Airways International, Air Canada, and Lufthansa.[11][12] The alliance chose Young & Rubicam for advertising, with a budget of $25 million (€18 million).[13][11] which brought competing airlines to form Oneworld in 1999 and SkyTeam in 2000.[citation needed]
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).[14] Then in September 2011, Branson said that Virgin Atlantic would join one of the existing alliances;[15] this idea was repeated in October 2012.[16] In December 2012, Delta Air Lines purchased Singapore Airlines' 49% stake in Virgin Atlantic for £224 million.[17] Virgin America was absorbed into Alaska Airlines by 2018, which joined the Oneworld alliance in 2021.[18][19] Meanwhile, Virgin Atlantic joined SkyTeam in 2023.[20]
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 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.[citation needed]
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 were Air Austral, Air Mauritius, Air Madagascar, Air Seychelles, and Int'Air Îles.[21]
U-FLY Alliance, the first alliance of low-cost carriers (LCCs), was formed in January 2016, comprising HK Express, Lucky Air, Urumqi Air, and West Air (all affiliated with HNA Group).[22] In May 2016, the world's largest alliance of LCCs was formed, Value Alliance, including founding members Cebu Pacific, Cebgo, Jeju Air, Nok Air, NokScoot, Scoot Airlines, Tigerair, Tigerair Australia, and Vanilla Air.[23] Neither alliance remains active as of 2025.
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Current alliances
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Star Alliance
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Star Alliance, founded in 1997, currently has 25 members:[24]
Aegean Airlines, 2010
Air Canada, founder
Air China, 2007
Air India, 2014
Air New Zealand, 1999
All Nippon Airways, 1999
Asiana Airlines, 2003
Austrian Airlines, 2000
Avianca, 2012
Brussels Airlines, 2009
Copa Airlines, 2012
Croatia Airlines, 2004
EgyptAir, 2008
Ethiopian Airlines, 2011
EVA Air, 2013
LOT Polish Airlines, 2003
Lufthansa, founder
Shenzhen Airlines, 2012
Singapore Airlines, 2000
South African Airways, 2006
Swiss International Air Lines, 2006
TAP Air Portugal, 2005
Thai Airways International, founder
Turkish Airlines, 2008
United Airlines, founder
Future members:
ITA Airways, Lufthansa takeover, 2026
Former members:
Adria Airways, 2004–2019, defunct
Ansett Australia, 1999–2001, defunct
Blue1, 2004–2012, defunct
BMI, 2000–2012, absorbed into British Airways[25]
Continental Airlines, 2009–2012, merged with United Airlines
Mexicana de Aviación, 2000–2004, joined Oneworld in 2009
Scandinavian Airlines, founder, 1997–2024, joined SkyTeam in 2024
Shanghai Airlines, 2007–2010, merged with China Eastern Airlines and joined SkyTeam as an affiliate of China Eastern in 2011
Spanair, 2003–2012, defunct
TACA, 2012–2013, merged with Avianca
TAM Airlines, 2010–2014, merged with LAN Airlines and joined Oneworld in 2014- US Airways, 2004–2014, joined Oneworld as an affiliate member of American Airlines and later merged completely with American in 2015
- Varig, 1997–2007, defunct
Star Alliance Connecting Partners
- Juneyao Air, 2017
Star Alliance Intermodal Partnership
Deutsche Bahn, 2022[26][27]
Austrian Federal Railways, 2025[28]
Oneworld
Oneworld, founded in 1999, currently has 15 members:[29]
Alaska Airlines, 2021
American Airlines, founder
British Airways, founder
Cathay Pacific, founder
Fiji Airways, 2025
Finnair, 1999
Iberia, 1999
Japan Airlines, 2007
Malaysia Airlines, 2013
Oman Air, 2025
Qantas, founder
Qatar Airways, 2013
Royal Air Maroc, 2020
Royal Jordanian, 2007
SriLankan Airlines, 2014
Future members:
- Hawaiian Airlines, joining in 2026
Former members:
Aer Lingus, 2000–2007, left the alliance[30]- Air Berlin, 2012–2017, defunct
Canadian Airlines, founder, 1999–2000, acquired by Air Canada- LATAM Brasil, 2014–2020
LATAM Chile, 2000–2020
Malév Hungarian Airlines, 2007–2012, defunct- Mexicana de Aviación, 2009 (ceased operations in 2010)
S7 Airlines, 2010–2022, suspended from alliance due to the Russian invasion of Ukraine- US Airways, 2014–2015, merged with American Airlines
SkyTeam
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SkyTeam, founded in 2000, currently has 18 members:[31]
Aerolíneas Argentinas, 2012
Aeroméxico, founder
Air Europa, 2007
Air France, founder
China Airlines, 2011
China Eastern Airlines, 2011
Delta Air Lines, founder
Garuda Indonesia, 2014
Kenya Airways, 2007
KLM Royal Dutch Airlines, 2004
Korean Air, founder
Middle East Airlines, 2012
Saudia, 2012
Scandinavian Airlines, 2024
TAROM, 2010
Vietnam Airlines, 2010
Virgin Atlantic, 2023
XiamenAir, 2012
Former members:
- Aeroflot, 2006–2022, suspended from alliance due to the Russian invasion of Ukraine
Alitalia, 2001–2021, defunct- China Southern Airlines, 2007–2018
- Continental Airlines, 2004–2009, joined Star Alliance in 2009 and later merged with United Airlines in 2010
Copa Airlines, 2007–2009, joined Star Alliance in 2012
Czech Airlines, 2001–2024, defunct- ITA Airways, 2021–2025, to join Star Alliance in 2026
- Northwest Airlines, 2004–2010, merged with Delta Air Lines
Vanilla Alliance
Vanilla Alliance, founded in 2015, currently has 4 members:[32]
Air Austral, founder
Madagascar Airlines, founder
Air Mauritius, founder
Air Seychelles, founder
Former members:
Int'Air Îles, founder, 2015–2024, defunct
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Former alliances
U-FLY Alliance
U-FLY Alliance, founded in 2016, had 4 members:[33]
Eastar Jet, 2016
Lucky Air, founder
Urumqi Air, founder
West Air, founder
Former members:
HK Express, 2016–2019, founder, acquired by Cathay Pacific in 2019.
Value Alliance
Value Alliance, founded in 2016, had 5 members:[34]
Cebu Pacific, founder
Cebgo, founder
Jeju Air, founder
Nok Air, founder
Scoot, founder
Former members:
NokScoot, 2016–2020, defunct
Tigerair, 2016–2017, merged with Scoot- Tigerair Australia, 2016–2018, founder
Vanilla Air, 2016–2019, founder, merged with Peach Aviation
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