FlightGlobal: Analysis – The 20-Year History of Global Airline Alliances

Global airline alliances connect flights, so travelers who purchase a ticket from one firm may be transported by aircraft from another firm and country. The three largest alliances account for more than 55 percent of capacity, explains Graham Dunn for FlightGlobal. “Global alliances have provided, and arguably helped, drive deeper consolidation and co-operation within the industry, helping to spawn many of the joint ventures now in place across key markets,” he writes. “All continents are covered, and almost every major country, by at least one of the alliances.” Airlines must meet conditions to join, and alliances are also creating a membership level for regional players. Most recent recruiting is in emerging markets, but alliances do not rush to fill geographic space. Each alliance has holes in certain markets and relies on established members with frequent flights into emerging nations like China or India. The alliances do not cover low-cost carriers, and Dunn notes that “Key areas of co-operation around IT systems, codesharing, lounges and frequent-flyer programmes were anathemas to budget-sector operators.” Goals include improving customer service and connectivity, and that relies on digital connections. – YaleGlobal