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An airline alliance is an agreement between two or more airlines to cooperate on a substantial level. The three largest passenger alliances are the Star Alliance, SkyTeam and Oneworld. Alliances also form between cargo airlines, such as that of WOW Alliance, SkyTeam Cargo and ANA/UPS Alliance. Alliances provide a network of connectivity and convenience for international passengers and international packages.

Rationale

Benefits can consist of:

An extended and optimized network: this is often realised through code sharing agreements. Many alliances started as only a code sharing network.
Cost reduction from sharing of:
- Sales offices
- Maintenance facilities
- Operational facilities, e.g. catering or computer systems.
- Operational 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.
- More departure times to choose from on a given route.
- More destinations within easy reach.
- Shorter travel times as a result of optimised transfers.
- A wider range of airport lounges shared with alliance members
- Faster mileage rewards by earning miles for a single account on several different carriers.
- Round-the-world tickets, enabling travelers to fly over the world for a relatively low price.

Airline alliances may also create disadvantages for the traveler, such as:

Higher prices when all competition is erased on a certain route.
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 (a Delta Air Lines fortress hub) and Amsterdam (a KLM fortress hub).

Issues

The ability of an airline to join an alliance is often restricted by laws and regulations or subject to approval by authorities. Antitrust laws play a large role.

Landing rights may not be owned by the airlines themselves but by the nation in which their head office resides. If an airline loses its national identity by merging to a large extent with a foreign company, existing agreements may be declared void by a country which objects to the merger.

The first airline alliance started in the 1930s, when Pan American-Grace Airways and parent company Pan American World Airways agreed to exchange routes to Latin America. The first large alliance which is still functioning started in 1989, when Northwest and KLM Royal Dutch Airlines agreed to code sharing on a large scale. A huge step was taken in 1992 when The Netherlands signed the first open skies agreement with the United States, in spite of objections from the European Union authorities. This gave both countries unrestricted landing rights on each others' soil. Normally landing rights are granted for a fixed number of flights per week to a fixed destination. Each adjustment takes negotiating, often between governments rather than between the companies involved. The United States was so pleased with the independent position that the Dutch took versus the E.U. that it granted antitrust immunity to the alliance between Northwest and KLM. Other alliances would struggle for years to overcome transnational barriers or still do so.

Alliances

Membership and market data for the largest airline alliances (as of December 2008) ^[1]^[2]^[3]

	Star Alliance 26 members Founded 1997	SkyTeam 11 members Founded 2000	Oneworld 11 members Founded 1999	Rest of Industry (selected major non-aligned carriers)
Passengers per year	586.60 million	462 million	328.63 million	489 million
Destinations	1071	905	673	(most destinations are served by some non-aligned carrier)
Revenue (Billion US$)	141.71	97.9	99.78	113
Market share	29.3%	20.6%	23.2%	26.9%
Participants¹	Members (JP) Adria Airways 2004 (AC) Air Canada founder (CA) Air China 2007 (NZ) Air New Zealand 1999 (NH) ANA 1999 (OZ) Asiana Airlines 2003 (OS) Austrian Airlines 2000 (KF) Blue1 2004 (BD) BMI 2000 (SN) Brussels Airlines 2009 (CO) Continental 2009 (OU) Croatia Airlines 2004 (MS) EgyptAir 2008 (LO) LOT Polish Airlines 2003 (LH) Lufthansa founder (SK) SAS (founder) (FM) Shanghai Airlines 2007 (SQ) Singapore Airlines 2000 (SA) South African Airways 2006 (JK) Spanair 2003 (LX) Swiss International Air Lines (2006) (TP) TAP Portugal 2005 (TG) Thai Airways International founder (TK) Turkish Airlines 2008 (UA) United Airlines founder (US) US Airways 2004 Future Members (A3) Aegean Airlines/Olympic Air 2010 (AI) Air India 2010 (JJ) TAM Airlines 2010 Former Members (AN) Ansett Airlines 1999-2001, defunct (MX) Mexicana 2000-2004, later joined Oneworld (RG) Varig 1997-2007, ejected	Members (SU) Aeroflot 2006 (AM) Aeroméxico founder (UX) Air Europa 2007-associate (AF) Air France (founder) (AZ) Alitalia 2001 (CZ) China Southern 2007 (OK) Czech Airlines 2001 (DL) Delta founder (KQ) Kenya Airways 2007-associate (KL) KLM 2004 (KE) Korean Air founder Future Members (RO) TAROM 2010-associate (VN) Vietnam Airlines 2010 (ME) MEA 2010-associate (MU) China Eastern 2011 Former Members (CO) Continental Airlines 2004-2009, changed to Star Alliance (CM) Copa Airlines 2007-2009 (NW) Northwest Merged with Delta	Members (AA) American Airlines founder (BA) British Airways founder (CX) Cathay Pacific founder (AY) Finnair 1999 (IB) Iberia 1999 (JL) Japan Airlines 2007 (LA) LAN 2000 (MA) Malév 2007 (MX) Mexicana 2009 (QF) Qantas (founder) (RJ) Royal Jordanian 2007 Future Members (S7) S7 Airlines 2010 (IT) Kingfisher Airlines 2011 Former Members (EI) Aer Lingus 2000-2007 (CP) Canadian Airlines 1999-2001, acquired by Air Canada	Americas (AR) Aerolineas Argentinas (AS) Alaska Airlines (AV) Avianca (CU) Cubana (G3) Gol Transportes Aéreos (TA) Grupo TACA (HA) Hawaiian Airlines (B6) JetBlue (FL) AirTran (WN) Southwest (WS) Westjet Europe / C.I.S (EI) Aer Lingus (VV) Aerosvit (AB) Air Berlin (KM) Air Malta (CY) Cyprus Airways (FI) Icelandair (JU) Jat Airways (DY) Norwegian Air Shuttle (FV) Rossiya (UN) Transaero (VS) Virgin Atlantic Africa & Middle East (AH) Air Algérie (W3) Arik Air (LY) El Al Airlines (EK) Emirates (ET) Ethiopian Airlines (EY) Etihad Airways (GF) Gulf Air (QR) Qatar Airways (SV) Saudi Arabian Airlines Asia (CI) China Airlines (HU) Hainan Airlines (9W) Jet Airways (GA) Garuda Indonesia (MH) Malaysia Airlines (PK) Pakistan International Airlines (PR) Philippine Airlines
Network Capacity
Within North America	23%	28%	15%	34%
Within South America	1%	2%	14%	83%
Within Europe	20%	16%	11%	53%
Within Middle East	2%	0%	3%	95%
Within Africa	23%	10%	4%	63%
Within Asia	35%	11%	9%	45%
Within Oceania	11%	0%	32%	57%
Between N. America and Europe	27%	34%	21%	18%
Between N. America and S. America	9%	29%	40%	22%
Between Europe and S. America	20%	28%	22%	30%
Between N. America and Asia	41%	29%	10%	20%
Between Europe and Asia	36%	22%	19%	23%

Airline Alliance Market Share By Network Capacity 2007

Notes

In 2005, SkyTeam launched its Associate Program, whereby existing codeshare alliances (such as Continental and Copa) can be integrated into SkyTeam's marketing (shared loyalty programs, etc.) Template:PDFlink.
Network strengths are continents or regions where listed airlines have one or more hubs or a major presence in several destinations.
Network weaknesses are continents or regions with no hubs and few (if any) flights for any airline in the alliance.
On June 19, 2008, Continental announced that it would be leaving SkyTeam on October 24, 2009 and it expects to begin participating in Star Alliance on October 27, 2009 as part of a codesharing agreement with Star Alliance charter member United Airlines (Continental will cut its codeshare ties to Delta and Northwest). [1] [2]
As the table shows, the three alliances combined fly 60.8% of all passengers.

References

1. oneworld http://www.oneworld.com
2. SkyTeam http://www.skyteam.com
3. Star Alliance http://www.staralliance.com

[1] ttp://skyteam.com/downloads/news/facts/skyteamFactSheet.pdf

[2] ttp://www.staralliance.com/int/press/facts_figures/star_alliance_facts_and_figures_dec2008_final.pdf

[3] ttp://www.oneworld.com/content/factsheet/W2_2009-02-03%20OW%2010A%2011%20AT%20A%20GLANCE%20FINAL1.pdf

[1]

[2]

[3]

@@ Line 29: / Line 29: @@
 Landing rights may not be owned by the airlines themselves but by the nation in which their head office resides. If an airline loses its national identity by merging to a large extent with a foreign company, existing agreements may be declared void by a country which objects to the merger.
-The first airline alliance started in the 1930s, when Pan American Grace Airways and parent company Pan American World Airways agreed to exchange routes to [[Latin America]]. The first large alliance which is still functioning started in 1989, when Northwest and KLM Royal Dutch Airlines agreed to code sharing on a large scale. A huge step was taken in 1992 when The Netherlands signed the first [[open skies]] agreement with the United States, in spite of objections from the [[European Union]] authorities. This gave both countries unrestricted landing rights on each others' soil. Normally landing rights are granted for a fixed number of flights per week to a fixed destination. Each adjustment takes negotiating, often between governments rather than between the companies involved. The United States was so pleased with the independent position that the Dutch took versus the E.U. that it granted antitrust immunity to the alliance between Northwest and KLM. Other alliances would struggle for years to overcome transnational barriers or still do so.
+The first airline alliance started in the 1930s, when [[Pan American-Grace Airways]] and parent company [[Pan American World Airways]] agreed to exchange routes to [[Latin America]]. The first large alliance which is still functioning started in 1989, when Northwest and KLM Royal Dutch Airlines agreed to code sharing on a large scale. A huge step was taken in 1992 when The Netherlands signed the first [[open skies]] agreement with the United States, in spite of objections from the [[European Union]] authorities. This gave both countries unrestricted landing rights on each others' soil. Normally landing rights are granted for a fixed number of flights per week to a fixed destination. Each adjustment takes negotiating, often between governments rather than between the companies involved. The United States was so pleased with the independent position that the Dutch took versus the E.U. that it granted antitrust immunity to the alliance between Northwest and KLM. Other alliances would struggle for years to overcome transnational barriers or still do so.
 ==Alliances==

v t e Commercial aviation
Airlines	Airline codes Airline holding companies Cargo airline Charter airlines Flag carriers Low-cost airlines Non-scheduled airline Passenger airlines Regional airlines
Alliances	Oneworld SkyTeam Star Alliance Value Alliance Vanilla Alliance U-FLY Alliance
Trade groups	International ACO ATAG IATA IATAN ISTAT United States A4A RAA Europe A4E EBAA ERA Other regions AACO AAPA AFRAA RAAA
Aircrew	Pilot in command (Captain) First officer Second officer Third officer Relief crew Flight attendant Flight engineer Loadmaster Aircraft pilot Purser Dead mileage
Airliner	Travel class First class Business class Premium economy class Economy class Basic economy class Aircraft cabin Aircraft lavatory Aircraft seat map Airline meal Airline seat Buy on board Crew rest compartment In-flight entertainment Inflight smoking Galley Sickness bag
Airport	Aerodrome Airline hub Airport check-in Airport lounge Airport rail link Airport terminal Airside pass Airstair Boarding Domestic airport Gate International airport Jet bridge Low-cost carrier terminal Runway Transit hotel
Customs / Immigration	Arrival card Border control (internal) Departure card Passport Timatic Travel document Travel visa (Electronic)
Environmental effects	Hypermobility Environmental effects of aviation
Law	Air transport agreement Air route authority between the United States and China Bermuda Agreement (UK–US, 1946–1978) Bermuda II Agreement (UK–US, 1978–2008) Cross-strait charter Beijing Convention Cape Town Treaty Chicago Convention Convention on the Marking of Plastic Explosives European Common Aviation Area Flight permit Freedoms of the air EU–US Open Skies Agreement Hague Hijacking Convention Hague Protocol ICAO Montreal Convention Paris Convention of 1919 Rome Convention Sabotage Convention Tokyo Convention Warsaw Convention
Baggage	Bag tag Baggage allowance Baggage carousel Baggage cart Baggage reclaim Baggage handler Baggage handling system Baggage sizer Checked baggage Hand luggage Lost luggage (WorldTracer) Luggage lock
Aviation safety	Air rage Air traffic control Air traffic service Aircraft safety card Airport authority Airport crash tender Airport police Airport security Airspace class Area control center Brace position Civil aviation authority Control area Control zone Controlled airspace Evacuation slide Flight information region Flight information service Flight recorder Instrument flight rules Overwing exits Pre-flight safety demonstration Sky marshal Special use airspace Special visual flight rules Terminal control area Terminal control center Uncontrolled airspace Upper information region Visual flight rules
Airline tickets	Airline booking ploys Airline reservations system Airline ticket Airline timetable Bereavement flight Boarding pass Codeshare agreement Continent pass Electronic ticket Fare basis code Flight cancellation and delay Frequent-flyer program Government contract flight One-way travel Open-jaw ticket Overbooking (Overselling) Passenger name record Red-eye flight Round-the-world ticket Standby Tracking Travel agency Travel website
Ground crew	Aircraft maintenance technician Aircraft ground handling Baggage handler Flight dispatcher
Miscellaneous	Air cargo Aviation taxation and subsidies Mile high club