Airline Alliance networks

Airline Alliances
• An Airline Alliance is an agreement between several Airlines to
Cooperate on a Substantial Level (Marketing Level).
• They form a Group of Airlines under a network.
• The First Airline Alliance was established in 1989 When
Northwest Airline(United States of America ) and KLM Royal
Dutch Airlines (Netherlands) agreed to code flights on a larger
scale.
• Today, Northwest Airlines no longer exists & KLM has joined the
Sky Team alliance.
• An airline alliance network refers to the
collective routes, services, and benefits
provided by airlines that are part of an
alliance. These networks are designed to offer
passengers a seamless travel experience
across multiple airlines, allowing them to book
connecting flights, earn frequent flyer miles,
and access shared services, such as lounges,
through the participating member airlines.
Three Largest Alliance Networks are :
1. Star Alliance
Founded: 1997
Members: Over 25 airlines, including major
ones like Lufthansa, United Airlines, Singapore
Airlines, ANA, Air India, Turkish Airlines, and
more.
Benefits: Extensive global network, more flight
options, better frequent flyer benefits (points
and miles), and the ability to book flights with
member airlines seamlessly.
One world
Founded: 1999
Members: Includes American Airlines,
British Airways, Cathay Pacific, Japan
Airlines, Qatar Airways, and others.
Benefits: A comprehensive network,
frequent flyer benefits, and priority services
across member airlines, improving travel
options and comfort for passengers.
• Sky Team
• Founded: 2000
• Members: Includes airlines such as Delta Air
Lines, Air France, KLM, Korean Air, and China
Eastern.
• Benefits: Access to more than 1,000
destinations, joint lounges, and coordinated
schedules, allowing for easier connections and
smoother travel experiences.
 Airline Code Share
Agreement
1. Code-Share Agreements:
Airlines within an alliance often share flight codes
and schedules. This means that a flight operated by
one airline may be sold as if it were operated by
another, making it easier for passengers to book
connecting flights between different airlines within
the same alliance.
2. Coordinated Schedules:
Alliances work to minimize layover times for
passengers connecting between flights
operated by different member airlines. This
coordination helps streamline travel and
improve the overall experience.
3. Global Coverage:
Airline alliance networks typically span across
continents, providing access to a wide range of
destinations. For example:
• Star Alliance offers over 1,300 destinations in more
than 190 countries.
• SkyTeam covers over 1,150 destinations across 175
countries.
• Oneworld has a reach of over 1,000 destinations in
170 countries.
4. Shared Services and Benefits:
Passengers can enjoy various benefits when
traveling within an alliance network, including:
Frequent Flyer Program Integration: Travelers can
accumulate miles with one airline and use them
for flights on other member airlines.
Airport Lounges: Many alliances provide access to
shared lounges, regardless of which airline the
passenger is flying with.
Priority Services: Passengers can often access
priority check-in, security lines, and boarding
when flying with alliance members.
5. Joint Marketing and Cost Savings:
Airlines within an alliance often collaborate on
marketing campaigns, reduce costs through
joint purchasing (e.g., aircraft and fuel), and
share airport facilities. This cooperation helps
airlines increase efficiency and reduce
operational expenses.
 Example of How the Alliance Network
Works:
• Imagine you're traveling from New York (USA) to
Sydney (Australia). You could book a single ticket for a
flight operated by United Airlines (Star Alliance
member) from New York to San Francisco, then
transfer to Singapore Airlines (also part of Star
Alliance) for your international leg to Singapore,
followed by a flight with Qantas Airways (partnered
with Star Alliance) to Sydney. Even though you're flying
with three different airlines, the process is
streamlined, and your baggage will be checked
through to your final destination.
 -To reduce Costs
• Alliance Partners reduce their costs by
sharing expenses associated with:
• Sales office Rental and Personnel
• Airport maintenance hangers and
mechanics
• Operational facilities catering or
systems
• Operational staff such as ground
handling and customer service personnel
• Investments and Purchases
 Benefits to Passengers
• Lower Airfares
• More Amenities & Services such as airport
lounges
• More destinations at easy reach
• Better scheduled and more frequent
departures
• Shorter Connecting Times
• Reciprocal Frequent flyer programs to
collect miles/Points& Privileges .