Cooperation agreement between two or more airlines
Anairline alliance is an aviation industry arrangement between two or moreairlines agreeing to cooperate on a substantial level. Alliances may provide marketing branding to facilitate travelers making inter-airlinecodeshare connections within countries. This branding may involve unifiedaircraft liveries of member aircraft.[1]
Benefits can consist of an extended network, often realised throughcodeshare 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 ofairport 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 betweenDetroit Metropolitan Wayne County Airport (a Delta Air Linesfortress hub) andAmsterdam Airport Schiphol (a KLM fortress hub).[8][9][10]
The first large alliance began in 1989, whenNorthwest Airlines andKLM agreed to large-scale codesharing. In 1992, the Netherlands signed the firstopen skies agreement with the United States, in spite of objections from theEuropean 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 aSkyTeam member and Northwest's successor airlineDelta 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]
In 2010Richard Branson, chairman of theVirgin Group, announced his intention to form a fourth alliance among Virgin branded airlines (Virgin Atlantic;Virgin America; and theVirgin 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 intoAlaska 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 thatAmerican Airlines andUS 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]