Airline alliance

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).{{cite magazine | archive-url = https://archive.today/20130505094919/http://www.telegraph.co.uk/finance/newsbysector/transport/9636203/index.html | url-status = dead | archive-date = 2013-05-05

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

Main article: Star Alliance

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

GRE Aegean Airlines, 2010

CAN Air Canada, founder

CHN Air China, 2007

IND Air India, 2014

NZL Air New Zealand, 1999

JPN All Nippon Airways, 1999

KOR Asiana Airlines, 2003

AUT Austrian Airlines, 2000

COL Avianca, 2012

BEL Brussels Airlines, 2009

PAN Copa Airlines, 2012

CRO Croatia Airlines, 2004

EGY EgyptAir, 2008

ETH Ethiopian Airlines, 2011

TWN EVA Air, 2013

POL LOT Polish Airlines, 2003

GER Lufthansa, founder

CHN Shenzhen Airlines, 2012

SIN Singapore Airlines, 2000

SAF South African Airways, 2006

SWI Swiss International Air Lines, 2006

POR TAP Air Portugal, 2005

THA Thai Airways International, founder

TUR Turkish Airlines, 2008

USA United Airlines, founder

Future members:

ITA ITA Airways, Lufthansa takeover, 2026

Former members:

• SLO Adria Airways, 2004–2019, defunct
• Australia Ansett Australia, 1999–2001, defunct
• FIN Blue1, 2004–2012, defunct
• GBR BMI, 2000–2012, absorbed into British Airways
• USA Continental Airlines, 2009–2010, merged with United Airlines in 2010
• MEX Mexicana de Aviación, 2000–2004, joined Oneworld in 2009
• DNK NOR SWE Scandinavian Airlines, founder, 1997–2024, joined SkyTeam in 2024
• CHN Shanghai Airlines, 2007–2010, merged with China Eastern Airlines and joined SkyTeam as an affiliate of China Eastern in 2011
• ESP Spanair, 2003–2012, defunct
• El Salvador TACA, 2012–2013, merged with Avianca
• BRA TAM Airlines, 2010–2014, merged with LAN Airlines and joined Oneworld in 2014
• USA US Airways, 2004–2014, joined Oneworld as an affiliate member of American Airlines and later merged completely with American in 2015
• BRA Varig, 1997–2007, defunct

Star Alliance Connecting Partners

• CHN Juneyao Air, 2017

Star Alliance Intermodal Partnership

• GER Deutsche Bahn, 2022
• Austria Austrian Federal Railways, 2025

Oneworld

Main article: Oneworld

Oneworld, founded in 1999, currently has 15 members:

USA Alaska Airlines, 2021

USA American Airlines, founder

GBR British Airways, founder

HKG Cathay Pacific, founder

FIJ Fiji Airways, 2025

FIN Finnair, 1999

ESP Iberia, 1999

JPN Japan Airlines, 2007

MYS Malaysia Airlines, 2013

OMA Oman Air, 2025

AUS Qantas, founder

QAT Qatar Airways, 2013

MAR Royal Air Maroc, 2020

JOR Royal Jordanian, 2007

LKA SriLankan Airlines, 2014

Future members:

• USA Hawaiian Airlines, 2026
• TAI Starlux Airlines, 2026 or 2027

Former members:

• Ireland Aer Lingus, 2000–2007, left the alliance
• GER Air Berlin, 2012–2017, defunct
• CAN Canadian Airlines, founder, 1999–2000, acquired by Air Canada
• BRA LATAM Brasil, 2014–2020
• CHL LATAM Chile, 2000–2020
• HUN Malév Hungarian Airlines, 2007–2012, defunct
• MEX Mexicana de Aviación, 2009 (ceased operations in 2010)
• RUS S7 Airlines, 2010–2022, suspended from alliance due to the Russian invasion of Ukraine
• USA US Airways, 2014–2015, merged with American Airlines

SkyTeam

Main article: SkyTeam

SkyTeam, founded in 2000, currently has 18 members:

ARG Aerolíneas Argentinas, 2012

MEX Aeroméxico, founder

ESP Air Europa, 2007

FRA Air France, founder

TWN China Airlines, 2011

CHN China Eastern Airlines, 2011

USA Delta Air Lines, founder

IDN Garuda Indonesia, 2014

KEN Kenya Airways, 2007

NLD KLM Royal Dutch Airlines, 2004

KOR Korean Air, founder

LBN Middle East Airlines, 2012

SAU Saudia, 2012

DNK NOR SWE Scandinavian Airlines, 2024

ROM TAROM, 2010

VNM Vietnam Airlines, 2010

GBR Virgin Atlantic, 2023

CHN XiamenAir, 2012

Former members:

• RUS Aeroflot, 2006–2022, suspended from alliance due to the Russian invasion of Ukraine
• ITA Alitalia, 2001–2021, defunct
• CHN China Southern Airlines, 2007–2018
• USA Continental Airlines, 2004–2009, joined Star Alliance in 2009 and later merged with United Airlines in 2010
• Panama Copa Airlines, 2007–2009, joined Star Alliance in 2012
• CZE Czech Airlines, 2001–2024, defunct
• ITA ITA Airways, 2021–2025, to join Star Alliance in 2026
• USA Northwest Airlines, 2004–2008, merged with Delta Air Lines in 2008

Vanilla Alliance

Main article: Vanilla Alliance

Vanilla Alliance, founded in 2015, currently has 4 members:

REU Air Austral, founder

MDG Madagascar Airlines, founder

MUS Air Mauritius, founder

SYC Air Seychelles, founder

Former members:

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

Former alliances

U-FLY Alliance

Main article: U-FLY Alliance

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

KOR Eastar Jet, 2016

CHN Lucky Air, founder

CHN Urumqi Air, founder

CHN West Air, founder

Former members:

• HKG HK Express, 2016–2019, founder, acquired by Cathay Pacific in 2019.

Value Alliance

Main article: Value Alliance

Value Alliance, founded in 2016, had 5 members:

PHL Cebu Pacific, founder

PHL Cebgo, founder

KOR Jeju Air, founder

THA Nok Air, founder

SGP Scoot, founder

Former members:

• THA NokScoot, 2016–2020, defunct
• SIN Tigerair, 2016–2017, merged with Scoot
• AUS Tigerair Australia, 2016–2018, founder
• JPN Vanilla Air, 2016–2019, founder, merged with Peach Aviation

Statistics

References

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