Cooperation agreement between two or more airlines
The 3 major airline alliances and the current fleet size of their home carriers (excluding subsidiaries, cargo and connecting partners) - from November 2023
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]
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] Traveller 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][8]
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).[9][10][11]
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.[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. Other alliances would struggle for years to overcome the transnational barriers and lack of antitrust immunity, and still do so.[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).[15] Then in September 2011, Branson said that Virgin Atlantic would join one of the existing alliances;[16] this idea was repeated in October 2012.[17] In December 2012, Delta Air Lines purchased Singapore Airlines' 49% stake in Virgin Atlantic for £224 million.[citation needed]Virgin America was absorbed into Alaska Airlines, which joined the Oneworld alliance in 2021.[18][19]
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]
Virgin Atlantic, a trading name of Virgin Atlantic Airways Limited and Virgin Atlantic International Limited, is a British airline with its head office in Crawley, West Sussex, England. The airline was established in 1984 as British Atlantic Airways, and was originally planned by its co-founders Randolph Fields and Alan Hellary to fly between London and the Falkland Islands. Soon after changing the name to Virgin Atlantic Airways, Fields sold his shares in the company after disagreements with Richard Branson over the management of the company. The maiden flight from London–Gatwick to Newark took place on 22 June 1984.
Japan Airlines Co., Ltd. is the flag carrier of Japan. JAL is headquartered in Shinagawa, Tokyo. Its main hubs are Tokyo's Narita International Airport and Haneda Airport, as well as Osaka's Kansai International Airport and Itami Airport. The JAL group of which it forms part include Japan Airlines as well as J-Air, Japan Air Commuter, Japan Transocean Air, and Ryukyu Air Commuter for domestic feeder services, and JAL Cargo for cargo and mail services.
The Star Alliance is the world's largest global airline alliance. Founded on 14 May 1997, its headquarters are located on the grounds of Frankfurt Airport in Frankfurt, Germany,
Oneworld is a global airline alliance consisting of 13 member airlines. It was founded on 1 February 1999. The alliance's stated objective is to be the first choice airline alliance for the world's frequent international travellers. Its headquarters have been located in Fort Worth, Texas since December 2022.
SkyTeam is one of the world's three major airline alliances. Founded in June 2000, SkyTeam was the last of the three alliances to be formed, the first two being Star Alliance and Oneworld, respectively. Its annual passenger count is 630 million (2019), the second largest of the three major alliances. As of January 2019, SkyTeam consists of 19 carriers from five continents and operates with the slogan "Caring more about you". It also operates a cargo alliance named SkyTeam Cargo, which partners ten carriers, all of them SkyTeam members. Its centralised management team, SkyTeam Central, is based at the World Trade Center Schiphol Airport on the grounds of Amsterdam Airport Schiphol in Haarlemmermeer, Netherlands.
Air France–KLM S.A., also known as Air France–KLM Group, is a French airline holding company with its headquarters in the rue du Cirque, Paris. The group’s three major brands are Air France, KLM and Transavia. Air France–KLM is the result of the merger in 2004 between Air France and KLM. Both Air France and KLM are members of the SkyTeam airline alliance. The group's main hubs are Paris–Charles de Gaulle Airport, Paris Orly Airport and Amsterdam Airport Schiphol. Air France–KLM Airlines transported 83 million passengers in 2022.
SilkAir Singapore Private Limited, operating as SilkAir, was a Singaporean airline with its head office in Changi, Singapore. It was a wholly owned subsidiary of Singapore Airlines and in 2017, operated scheduled passenger services from Singapore to 54 cities in Southeast Asia, the Indian subcontinent, East Asia, and Northern Australia. As the regional wing of Singapore Airlines, it served the short to medium-haul destinations in the Singapore Airlines Group network.
Tiger Airways Singapore Pte Ltd, operating as Tigerair, was a low-cost airline headquartered in Singapore. It operated services to regional destinations in Southeast Asia, Bangladesh, Taiwan, China and India from its main base at Singapore Changi Airport. It was founded as an independent airline in 2003, and was listed on the Singapore Stock Exchange under the Tiger Airways Holdings name in 2010. In October 2014, parent company Tiger Airways Holdings became a subsidiary of the SIA Group, who took a 56% ownership stake.
Wings Alliance was the working name of a proposed airline alliance to be anchored by the American carriers Northwest Airlines and Continental Airlines of USA with the European flag carriers KLM of the Netherlands and Alitalia of Italy. Although these airlines cooperated with one another through code-sharing and frequent-flyer program coordination, no formal association was ever announced. It was rendered superfluous in September 2004 when most of its participants joined the SkyTeam alliance.
Tiger Airways Australia Pty Ltd, operating as Tigerair Australia, was an Australian low-cost airline. Founded by Tiger Airways Holdings, it commenced services in the domestic airline market on 23 November 2007 as Tiger Airways Australia. It later became a subsidiary of Virgin Australia Holdings. On 25 March 2020, Tigerair suspended all operations as a result of the COVID-19 pandemic. Following Virgin Australia Holdings going into voluntary administration and later sold, new owner Bain Capital confirmed the brand would be retired.
Tiger Airways Holdings Limited was a Singapore-based airline holding company for a group of low-cost carriers operating in the Asia-Pacific region. It was formed in 2007 to allow for easier management of the airline subsidiaries, as well as any future expansion, without having to focus on operational issues, leaving those to the airlines themselves. In 2016, Singapore Airlines purchased the company and it was delisted from the Singapore Exchange.
Heathrow Terminal 4 is an airport terminal at Heathrow Airport, the main airport serving London, England, situated to the south of the southern runway, next to the cargo terminal. It is connected to Heathrow Terminals 2 and 3 by the vehicular Heathrow Cargo Tunnel, and by rail with the Heathrow Terminal 4 tube and Heathrow Terminal 4 railway stations. The terminal was temporarily closed in 2020. Built at a cost of £200 million, Terminal 4 was opened by the Prince and Princess of Wales on 1 April 1986. British Airways was the main airline operating from the terminal from 1986 until its move to Terminal 5 on 29 October 2009, eventually making Terminal 4 the Heathrow base for airlines of the SkyTeam airline alliance.
Airlines have proliferated in Africa because, in many countries, road and rail networks are not well developed due to financial issues, terrain, and rainy seasons. Ben R. Guttery, author of Encyclopedia of African Airlines, said "Although most of the carriers have never been large by European or American standards, they have had tremendous impact on the economy and the people." Many larger African airlines are owned partially or completely by national governments. Some African airlines have or formerly had European airlines as major shareholders, such as KLM that has a 7.8% stake in Kenya Airways and British Airways which formerly had an 18% stake in Comair.
Mileage Plan is the frequent-flyer program of Alaska Airlines. Members accrue program "miles" by flying Alaska Airlines and partner-operated flights, using co-branded credit cards, and booking vacation and hotel packages, among other methods. Mileage Plan miles can be redeemed for award flights on Alaska Airlines and partner carriers and provide eligibility for elite status with Mileage Plan.
Scoot Pte Ltd, operating as Scoot, is a Singaporean low-cost airline and a wholly owned subsidiary of Singapore Airlines. It began its operations on 4 June 2012 on medium and long-haul routes from Singapore, predominantly to various airports throughout the Asia-Pacific region. Scoot's airline slogan is Escape the Ordinary.
The Vanilla Alliance is an airline alliance formed in September 2015. The alliance is the fourth largest in the world as of 2018, trailing Oneworld, Star Alliance, and SkyTeam. All of the airlines within the alliance operate in the Indian Ocean region and are based in sovereign states that are members of the Indian Ocean Commission or French overseas territories in the Indian Ocean.
Value Alliance is an airline alliance formed in May 2016. It is the world's second alliance, after the U-FLY Alliance, to consist only of low-cost carriers (LCCs). It is the first pan-regional LCC alliance. It comprises five, originally nine, Asia-Pacific airlines: Cebu Pacific, Cebgo, Jeju Air, Nok Air and Scoot.
Italia Trasporto Aereo S.p.A., trading as ITA Airways, is the flag carrier of Italy, and the largest Italian airline by total number of passengers carried, by number of destinations served, and by fleet size. It is owned by the Government of Italy via the Ministry of Economy and Finance. The airline flies to over 70 scheduled domestic, European, and intercontinental destinations. ITA Airways is a member of the SkyTeam airline alliance. Its main hub is Leonardo da Vinci–Fiumicino Airport near Rome and focus city is Linate Airport near Milan.
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