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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.

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 % for others. In 2019, by number of passengers, Star Alliance was leading 762 million, followed by SkyTeam (630 million) and Oneworld (535 million).

Rationale

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). 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.

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).

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.

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.

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. The alliance chose Young & Rubicam for advertising, with a budget of $25 million (€18 million). 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). Then in September 2011, Branson said that Virgin Atlantic would join one of the existing alliances; this idea was repeated in October 2012. In December 2012, Delta Air Lines purchased Singapore Airlines' 49% stake in Virgin Atlantic for £224 million. Virgin America was absorbed into Alaska Airlines by 2018, which joined the Oneworld alliance in 2021. Meanwhile, Virgin Atlantic joined SkyTeam in 2023.

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.

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.

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). 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, Tigerair, Tigerair Australia and Vanilla Air. Neither alliance remains active as of 2025.

Current alliances

Star Alliance

Star Alliance, founded in 1997, currently has 25 members:

Aegean Airlines, 2010<br/> Air Canada, founder<br/> Air China, 2007<br/> Air India, 2014<br/> Air New Zealand, 1999<br/> All Nippon Airways, 1999<br/> Asiana Airlines, 2003<br/> Austrian Airlines, 2000<br/> Avianca, 2012<br/> Brussels Airlines, 2009<br/> Copa Airlines, 2012<br/> Croatia Airlines, 2004<br/> EgyptAir, 2008<br/> Ethiopian Airlines, 2011<br/> EVA Air, 2013<br/> ITA Airways, 2026<br/> LOT Polish Airlines, 2003<br/> Lufthansa, founder<br/> Shenzhen Airlines, 2012<br/> Singapore Airlines, 2000<br/> South African Airways, 2006<br/> Swiss International Air Lines, 2006<br/> TAP Air Portugal, 2005<br/> Thai Airways International, founder<br/> Turkish Airlines, 2008<br/> United Airlines, founder<br/>

Former members:

Star Alliance Connecting Partners

Star Alliance Intermodal Partnership

Oneworld

Oneworld, founded in 1999, currently has 15 members:

Alaska Airlines, 2021<br/> American Airlines, founder<br/> British Airways, founder<br/> Cathay Pacific, founder<br/> Fiji Airways, 2025<br/> Finnair, 1999<br/> Iberia, 1999<br/> Japan Airlines, 2007<br/> Malaysia Airlines, 2013<br/> Oman Air, 2025<br/> Qantas, founder<br/> Qatar Airways, 2013<br/> Royal Air Maroc, 2020<br/> Royal Jordanian, 2007<br/> SriLankan Airlines, 2014

Future members:

Former members:

SkyTeam

SkyTeam, founded in 2000, currently has 18 members:

Aerolíneas Argentinas, 2012<br/> Aeroméxico, founder<br/> Air Europa, 2007<br/> Air France, founder<br/> China Airlines, 2011<br/> China Eastern Airlines, 2011<br/> Delta Air Lines, founder<br/> Garuda Indonesia, 2014<br/> Kenya Airways, 2007<br/> KLM Royal Dutch Airlines, 2004<br/> Korean Air, founder<br /> Middle East Airlines, 2012 <br /> Saudia, 2012<br /> Scandinavian Airlines, 2024<br/> TAROM, 2010 <br /> Vietnam Airlines, 2010<br /> Virgin Atlantic, 2023<br /> XiamenAir, 2012<br />

Former members:

Vanilla Alliance

Vanilla Alliance, founded in 2015, currently has 4 members:<br/>

Air Austral, founder<br/> Madagascar Airlines, founder<br/> Air Mauritius, founder<br/> Air Seychelles, founder<br/>

Former members:

Int'Air Îles, founder, 2015–2024, defunct

Former alliances

U-FLY Alliance

U-FLY Alliance, founded in 2016, had 4 members:

Eastar Jet, 2016<br/> Lucky Air, founder<br/> Urumqi Air, founder<br/> West Air, founder

Former members:

Value Alliance

Value Alliance, founded in 2016, had 5 members:

Cebu Pacific, founder<br/> Cebgo, founder<br/> Jeju Air, founder<br/> Nok Air, founder<br/> Scoot, founder

Former members:

Statistics

See also

Notes and references

External links