Have the global airline alliances invented some twenty years ago reached their limits? Or are they now evolving in an environment with more porous economic borders? We would lean more towards the second solution, even if many see the model being undermined by new announcements of shareholdings and code-share agreements between competing alliance airlines. Recently, Lufthansa, a founding member of Star Alliance, signed a code-share agreement with Cathay Pacific, which is part of oneworld, while at the same time initiating a rapprochement with Etihad, which is increasing its holdings in airlines such as Airberlin and Alitalia.<\/p>\n
Another example of his increasingly blurred borders<\/strong>American Airlines (oneworld) committed on 29 March to invest 200 million dollars in the capital of China Southern Airlines, one of the three largest Chinese airlines and a member of the SkyTeam alliance. American Airlines would regain an observer seat on the company's board of directors, without voting rights.<\/p>\n It's a departure from the usual. \" Most of the time, companies belonging to the same alliance are involved in joint ventures.<\/em> \"says Michael Blunt, Vice President Communications for the oneworld alliance. In the past, we have seen British Airways take a stake in Iberia, or more recently Qatar Airways in IAG and LAN, all members of oneworld, or Delta in China Eastern, partners in SkyTeam.<\/p>\n While American Airlines' entry into China Southern's capital should result in code-sharing and interline agreements, the move should be limited, as it would threaten existing agreements with Cathay Pacific, oneworld's exclusive partner for China. And it is not certain that either American or Cathay will decide to withdraw from an alliance that is actually benefiting them.<\/p>\n Similarly, the recent agreement between Lufthansa and Cathay Pacific<\/strong> At the end of April, Lufthansa will be code-sharing flights to 14 European cities and three cities in Australia and New Zealand via Frankfurt and Hong Kong. It competes with the partnership between Lufthansa and its Asian Star Alliance partner, Singapore Airlines. However, there is a very large-scale agreement between the two carriers covering numerous destinations in Europe, Asia and Australia. Star allows for this type of 'second tier' agreement alongside existing synergies within the alliance.<\/p>\n The cohabitation of alliance members and partner airlines through code-sharing or equity participation has in fact existed for a long time. Qantas, for example, a member of oneworld, has developed a special relationship with Emirates, particularly on the Australia-Europe route. This has not prevented it from playing an active role within oneworld, notably through agreements with American Airlines and Japan Airlines. In fact, there is no systematic causal link between the acquisition of a capital stake and membership of an alliance. The cross-holdings<\/strong> between Cathay Pacific and Air China have so far had no influence on the strategies of the two airlines with regard to their alliances, the former being oneworld and the latter being part of Star.<\/p>\n For its part, Air France-KLM is expected to finalise a codeshare agreement with Singapore Airlines. Here again, the primary reason for this rapprochement is geopolitical. The Skyteam alliance remains rather weak in the Pacific, despite the presence of Garuda Indonesia. The absence of non-stop flights from France to Indonesia and of a real hub in Jakarta would also explain this rapprochement. Faced with a founding member of Skyteam, the alliance is not likely to oppose this agreement, as desired by the Franco-Dutch carrier.<\/p>\n Alliances have long been integrating airlines competing in the same geographical sector. This is the case of Skyteam with the almost simultaneous integration of China Eastern and China Southern; of Star Alliance with - at one time - the simultaneous presence of United Airlines and Air Canada, Singapore Airlines and Thai Airways International or Adria Airways (Slovenia) and Croatia Airlines.<\/p>\n Alliances therefore seem to have a future<\/strong> even if they risk evolving further or adapting their conditions for new members to the economic climate. But they still represent added value, as Markus Ruediger, spokesman for Star Alliance, points out: \"The alliances remain highly relevant, especially for business travellers, who benefit from a wide range of advantages through an alliance like Star, and who can make a journey involving several airlines as simple and efficient as possible\".<\/p>","protected":false},"excerpt":{"rendered":" Could the proliferation of agreements and shareholdings between airlines belonging to rival alliances spell the end for the latter? Not for sure...<\/p>","protected":false},"author":21,"featured_media":60007,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[131,1483],"type-darticle":[],"n_magazine":[],"class_list":["post-59585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aerien","tag-compagnies-aeriennes","tag-alliances","vapo-free"],"acf":[],"yoast_head":"\n