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A flag carrier is a transportation company, such as an airline or shipping company, that, being locally registered in a given state, enjoys preferential rights or privileges accorded by the government for international operations. The term also refers to any carrier that is or was owned by a government,[1] even long after their privatization. [2]

Flag carriers may be known as such due to maritime law requiring all aircraft or ships to display the state flag of the country of their registry.[3]

A flag carrier (if it is a certificated airline rather than a holding company, conglomerate, or multinational private equity firm) may also be known as a national airline or a national carrier, although this can have different legal meanings in some countries.

Background

The first definition is rooted in the fact that pursuant to Article 17 of the Convention on International Civil Aviation aircraft have the nationality of the state in which they are registered.[4] U.S. law (14 CFR § 121.153 (a) (1)) requires American air carriers to operate aircraft registered in the United States and most countries have similar laws.[5] Thus when an airline operates an international route, between two countries, having been designated [6] pursuant to a Bilateral Air Transport Agreement any crime that would be committed on board would be prosecuted under the laws of the airline's state. Article 3 (1) of Tokyo Convention declares that "The State of registration [of the aircraft] is competent to exercise jurisdiction over “offenses and acts committed on board.”" Therefore the aircraft is truly carrying the flag of its country.[7] The American definition of "U.S.-flag air carrier service" contained in 48 CFR 47.403-1.[8] is based on this first definition. The U.S. requirements under the Fly America Act,[9] are consistent with requiring that Title 18 of the United States Code (U.S. Criminal Law) would protect U.S. government employees on flights to foreign countries.

The second and more broadly used definition of "flag carrier" is a legacy of the time when countries established state-owned airline companies. Governments then took the lead due to the high capital costs of establishing and running airlines. However, not all such airlines were government-owned; Pan Am, TWA, Cathay Pacific, Union de Transports Aériens, Canadian Pacific Air Lines and Olympic Airlines were all privately owned. Most of these were considered to be flag carriers[10] as they were the "main national airline"[11] and often a sign of their country's presence abroad.[12][13]

The heavily regulated aviation industry also meant aviation rights are often negotiated between governments, denying airlines the right to an open market. These Bilateral Air Transport Agreements similar to the Bermuda I and Bermuda II agreements specify rights awardable only to locally registered airlines, forcing some governments to jump-start airlines to avoid being disadvantaged in the face of foreign competition. Some countries also establish flag carriers such as Israel's El Al[14] or Lebanon's Middle East Airlines[15] for nationalist reasons, or to aid the country's economy, particularly in the area of tourism.[16]

In many cases, governments would directly assist in the growth of their flag carriers typically through subsidies and other fiscal incentives. The establishment of competitors in the form of other locally registered airlines may be prohibited, or heavily regulated to avoid direct competition.[17] Even where privately run airlines may be allowed to be established, the flag carriers may still be accorded priority, especially in the apportionment of aviation rights to local or international markets.[18]

In the last two decades, however, many of these airlines have since been corporatized as a public company or a state-owned enterprise, or completely privatized.[19] The aviation industry has also been gradually deregulated and liberalized,[20] permitting greater freedoms of the air particularly in the United States and in the European Union with the signing of the Open Skies agreement.[21] One of the features of such agreements is the right of a country to designate multiple airlines to serve international routes with the result that there is no single "flag carrier".[22] The United States does not actually have a flag carrier, however colloquially Delta Airlines, American Airlines, United Airlines and US Airways are all considered[according to whom?] to be the flag carrier of the United States.[23]

List of flag-carrying airlines

The chart below lists airlines considered to be a "flag carrier", based on current or former state ownership, or other verifiable designation as a national airline.

Country/Region Airline Details of current state ownership Details of former state ownership
 Afghanistan Ariana Afghan Airlines[24] Majority[25]
 Algeria Air Algérie[26] State-owned[27]
 Angola TAAG Angola Airlines[28] State-owned
 Argentina Aerolíneas Argentinas[29] State-owned[29]
 Australia Qantas[30] None State-owned until 1992[31]
 Austria Austrian Airlines[32] None - owned by Lufthansa State-owned until 5 Dec 2008[33]
 Azerbaijan Azerbaijan Airlines[34]
 Bahamas Bahamasair[35] State-owned
 Bahrain Gulf Air[36]
 Bangladesh Biman Bangladesh Airlines[37] Public-limited company State-owned until 23 July 2007
 Belarus Belavia[38] State-owned[38]
 Belgium Brussels Airlines[39] None
 Bhutan Druk Air[40] None
 Bolivia Boliviana de Aviación State-owned[41]
 Bosnia and Herzegovina B&H Airlines[42] Majority (50.93%) 99.93% prior to 2008
 Botswana Air Botswana State-owned
 Brunei Royal Brunei Airlines[43] State-owned[43]
 Bulgaria Bulgaria Air[44] Majority (59.58%)
 Burkina Faso Air Burkina
 Burundi Air Burundi State-owned
 Cambodia Cambodia Angkor Air[45] Majority (51%)[46]
 Cameroon Camair-Co[47]
 Canada Air Canada None State-owned until 1989[48]
 Cape Verde TACV[49]
 Cayman Islands Cayman Airways State-owned (100%)[50]
 Chad Toumaï Air Tchad
 Chile LAN Airlines[51] None
 China Air China[52] Majority (51.8%)[53] State-owned until 2004, and indirectly control through parent company till now[54]
 Colombia Avianca[55] None
 Costa Rica Lacsa State-owned Owned by Taca[contradictory]
 Croatia Croatia Airlines[56] Majority (98%)[57]
 Cuba Cubana de Aviación[58]
 Cyprus Cyprus Airways[59] Majority (70%)[59]
 Czech Republic Czech Airlines[60] Majority (56%)[60]
 Denmark Scandinavian Airlines[61] Joint-Venture[nb 1]  
 Norway
 Sweden
 Djibouti Djibouti Air Joint venture
 Ecuador TAME[63] State-owned[64]
 Egypt EgyptAir State-owned
 Equatorial Guinea Ecuato Guineana
 Eritrea Eritrean Airlines State-owned
 Estonia Estonian Air State-owned[65]
 Ethiopia Ethiopian Airlines[66] State-owned
 Fiji Fiji Airways[67] Majority (51%)[68]
 Faroe Islands Atlantic Airways[69]
 Finland Finnair[70] 55.8[71]
 France Air France[72] Minority (~20%)[citation needed]
 French Polynesia Air Tahiti Nui[73] Majority[74]
 Georgia Georgian Airways None
 Germany Lufthansa[75] None State-owned until 1994;[76] remaining government shares were sold in 1997[77]
 Guyana Caribbean Airlines[78] None
 Greenland Air Greenland[79] Joint venture[citation needed]
 Haiti Tortug' Air
 Hong Kong Cathay Pacific Cross Holding with Air China (29.9%)[80][additional citation(s) needed]
Dragonair[citation needed] Holding by Cathay Pacific in 100%
 Iceland Icelandair[81]
 India Air India[82] State-owned[83]
 Indonesia Garuda Indonesia[84] Majority
 Ireland Aer Lingus[85] Minority (25%)[86]
 Iran Iran Air 100% state-owned [87]
 Iraq Iraqi Airways[88]
 Israel El Al[89] Minority[citation needed] State-owned until June 2004
 Italy Alitalia[90] State-owned until 2008[citation needed]
 Ivory Coast Air Côte d'Ivoire[91] Minority (49%)
 Jamaica Air Jamaica
 Japan Japan Airlines[92] None State-owned until 1987
 Jordan Royal Jordanian[93]
 Kazakhstan Air Astana[94] Majority (51%)[95]
 Kenya Kenya Airways[96] Minority (29.8%)[97]
 Kiribati Air Kiribati
 Kuwait Kuwait Airways[98] State-owned[99]
 Laos Lao Airlines[100] State-owned[100]
 Libya Afriqiyah Airways[101] State-owned[102]
Libyan Airlines[103] State-owned[103]
 Latvia Air Baltic Majority (99.8%)[104]
 Lebanon Middle East Airlines[105]
 Luxembourg Luxair[106] Minority (49.96%)
 Macau Air Macau[107] Minority (5%)
 Madagascar Air Madagascar[108] Majority
 Malawi Air Malawi State-owned
 Malaysia Malaysia Airlines[109]
 Maldives Maldivian
 Malta Air Malta[110] Majority[111]
 Mauritania Mauritania Airlines International
 Mauritius Air Mauritius[112]  
 Mexico Aeroméxico None State-owned until 2007
 Moldova Air Moldova
 Mongolia MIAT Mongolian Airlines[113] State-owned[114]
 Montenegro Montenegro Airlines[115]
 Morocco Royal Air Maroc[116] State-owned
 Mozambique LAM Mozambique Airlines[117] State-owned
 Myanmar Myanma Airways[118] State-owned
 Namibia Air Namibia[119] State-owned (100%)[120]
 Nauru Our Airline[121] State-owned[121]
 Nepal Nepal Airlines[122] State-owned
 Netherlands KLM[72]
 New Zealand Air New Zealand[123] Majority (73.13%)[124] State-owned until 1989, partially re-nationalized in 2001
 North Korea Air Koryo State-owned[125]
 Oman Oman Air[126] Majority[127]
 Pakistan Pakistan International Airlines[37] Majority (90.2%)[128]
 Panama Copa Airlines None
 Papua New Guinea Air Niugini
 Philippines Philippine Airlines[129]
 Poland LOT Polish Airlines[130] Majority (93%)[131]
 Portugal TAP Portugal[132] Full[133]
 Qatar Qatar Airways State-owned
 Réunion Air Austral[134]
 Romania TAROM Majority (95%) [135]
 Russia Aeroflot[136] Majority (51%)
 Rwanda RwandAir[137]
 Saint Vincent and the Grenadines SVG Air
 Samoa Virgin Samoa[138] Joint-venture, minority (49%)[139]
 São Tomé and Príncipe STP Airways None
 Saudi Arabia Saudia[140] Majority
 Serbia Air Serbia[141] Majority (51%)[142][additional citation(s) needed]
 Seychelles Air Seychelles[143] None
 Solomon Islands Solomon Airlines State-owned (100%)[144]
 Sierra Leone Arik Air None
 Singapore Singapore Airlines[145] 54.5% through Temasek Holdings[146]
 Slovenia Adria Airways[147] Majority (70%)[115]  
 South Africa South African Airways[148] State-owned[149]
 South Korea Korean Air[150] None[151]
 South Sudan Southern Star Airlines
 Spain Iberia[152] Minority (5%)[153]
 Sri Lanka SriLankan Airlines[37] State-owned[154]
 Sudan Sudan Airways State-owned[155]
 Suriname Surinam Airways[156] State-owned[157]
 Eswatini Swaziland Airlink Joint venture
 Switzerland Swiss International Air Lines[158]
 Syria Syrian Air[159] State-owned
 Taiwan China Airlines[160] None State-owned until 1991. 51.28% held by non-profit Civic Aviation Development Foundation.[161]
 Tajikistan Tajik Air State-owned
 Tanzania Air Tanzania State-owned
 Thailand Thai Airways International[162] Majority (51%)
 Trinidad and Tobago Caribbean Airlines[163] Majority (84%)[164]
 Tunisia Tunisair[165] Majority[165]
 Turkey Turkish Airlines[42] Minority (49%)
 Turkmenistan Turkmenistan Airlines State-owned
 Uganda Air Uganda None
 Ukraine Ukraine International Airlines[166]  
 United Arab Emirates Etihad Airways[167] State-owned[167]
Emirates[168] State-owned
 United Kingdom British Airways[169] None Privatised in 1987[170]
 Uzbekistan Uzbekistan Airways Majority
 Venezuela Conviasa[citation needed] State-owned
 Vietnam Vietnam Airlines[171] Majority (80%) [172]
 Vanuatu Air Vanuatu[173]
 Yemen Yemenia[174] Majority
 Zimbabwe Air Zimbabwe[175] State-owned[176]

Notes and references

Notes

  1. ^ SAS is partly owned by the governments of Denmark (14.3%), Norway (14.3%) and Sweden (21.4%), and is the flag carrier for all three nations.[62]

References

  1. ^ "flag carrier noun". Cambridge Dictionaries Online. Retrieved 22 October 2013.
  2. ^ Don Sull (1999). "Case Study easyJet's $500 Million Gamble". European Management Journal Vol. 17, No. 1. pp. 21–22.
  3. ^ "flag carrier definition". Businessdictionary.com. Retrieved 22 May 2009.
  4. ^ "Convention on International Civil Aviation" (PDF). [International Civil Aviation Organization]. Retrieved 6 December 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  5. ^ P. Paul Fitzgerald (2011). "In defense of the nationality of aircraft". Annals of Air and Space Law,. p. 87.{{cite news}}: CS1 maint: extra punctuation (link)
  6. ^ "Air Agreements and Designated Air Carriers". [Canadian Transportation Agency]. Retrieved 6 December 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  7. ^ P. Paul Fitzgerald (2011). "In defense of the nationality of aircraft". Annals of Air and Space Law,.{{cite news}}: CS1 maint: extra punctuation (link)
  8. ^ "48 CFR 47.403-1 - Availability and unavailability of U.S.-flag air carrier service" (PDF). [U.S. Government Printing Office]. Retrieved 6 December 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  9. ^ Guidelines for International Travel Paid for by the Government. Wright State University.
  10. ^ Paul Stephen Dempsey (1991). "Airline Management; Strategies for the 21st Century". Coast Aire Publication. p. 299.
  11. ^ "flag airline definition". [MacMillan Dictionary]. Retrieved 9 December 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  12. ^ Henry Ladd Smith (1991). "Airways Abroad; The Story of American World Air Routes". Smithsonian History of Aviation Series,.{{cite news}}: CS1 maint: extra punctuation (link)
  13. ^ Anthony Sampson (1984). "Empires of the Sky; The Politics, Contests and Cartels of World Airlines". Hodder and Stoughton,.{{cite news}}: CS1 maint: extra punctuation (link)
  14. ^ Arnold Sherman (1972). "To the Skies: The El Al Story". Bantam Books,.{{cite news}}: CS1 maint: extra punctuation (link)
  15. ^ Anthony Sampson (1984). "Empires of the Sky; The Politics, Contests and Cartels of World Airlines". Hodder and Stoughton,. p. 82.{{cite news}}: CS1 maint: extra punctuation (link)
  16. ^ Tim Pat Coogan (2002). "Wherever Green Is Worn: The Story of the Irish Diaspora". Palgrave Macmillan,. p. 265.{{cite news}}: CS1 maint: extra punctuation (link)
  17. ^ David Warnock-Smith and Peter Morrel (2008). "Air transport liberalisation and traffic growth in tourism-dependent economies: A case-history of some US-Caribbean markets". Journal of Air Transport Management 14. p. 230.
  18. ^ R.E.G. Davies (1987). "Rebels and Reformers of the Airways". Airlife England,. pp. 250–254.{{cite news}}: CS1 maint: extra punctuation (link)
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  21. ^ "Open Skies Partners". [U.S. State Department]. Retrieved 6 December 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  22. ^ Joanna Mastalerek (2006). "The Future of the Open Skies Agreements after the ECJ judgements - Legal and Economic Aspects". GRIN Verlag. p. 12.
  23. ^ Airlines considered to be the flag carrier of the US
  24. ^ "EU To Impose Ban On Afghan Planes". Airwise News. 22 November 2010. Archived from the original on 5 March 2012. Kabul-based Safi is the country's No. 2 airline after national carrier Ariana Afghan Airlines.
  25. ^ [1][dead link]
  26. ^ "Air Algerie Eyeing African Tie-Ups - CEO". Airwise News. 29 April 2008. Archived from the original on 5 March 2012. Algeria's national airline Air Algerie is considering tie-ups...
  27. ^ "Air Algerie Tenders For 16 Planes". Airwise News. Reuters. 11 April 2013. Archived from the original on 17 April 2013.
  28. ^ Buyck, Cathy (14 June 2011). "Ex-Im Bank arranges financing for TAAG 777-300". Air Transport World. Archived from the original on 2 January 2013. Retrieved 2 January 2013. The aircraft will be used to expand the Angolan national flag carrier's intercontinental service provided by its all-Boeing fleet.
  29. ^ a b "Aerolineas Argentinas to focus on expansion in protected domestic market following 737-800 order". Centre for Aviation. 29 October 2013. Archived from the original on 30 October 2013.
  30. ^ Govindasamy, Siva (6 February 2012). "Qantas CEO pushes back against proposed legislative changes". Singapore: Flightglobal. Archived from the original on 21 June 2013. The Qantas Sale Act was passed in 1993 when the airline was privatised and the main aim of the act is to keep the airline "a majority Australian-owned flag carrier".
  31. ^ "Accelerating Change in the 1990s". Qantas. 31 March 2002. Retrieved 16 August 2013.
  32. ^ "Austrian Airlines' restructuring moves forward with the transfer of operations to Tyrolean Airways". Centre for Aviation. 4 July 2012. Archived from the original on 30 May 2013. Mr Albrecht has accepted that there are no sacred houses in the very competitive European market and Austrian Airlines is remaining Austria's flag carrier only in name.
  33. ^ "AUA-Verkauf besiegelt: Kranich soll Flügel verleihen «". Diepresse.com. 31 March 2010. Retrieved 16 August 2013.
  34. ^ "Azerbaijan Airlines expands network as Azerbaijan aims to raise tourism profile". Centre for Aviation. 15 June 2012. Archived from the original on 15 June 2012. Retrieved 15 June 2012. The flag carrier accounts for 46% of international capacity (seats) at Baku, according to Innovata data.
  35. ^ "About us". Retrieved 3 August 2012.
  36. ^ "Gulf Air Cuts Boeing, Revises Airbus Order". Airwise News. Reuters. 12 November 2012. Archived from the original on 26 November 2012. Retrieved 26 November 2012. Gulf Air, Bahrain's struggling national carrier, has cut its order for Boeing's 787 Dreamliner and also revised a deal with Airbus, as it restructures its fleet to cope with a tough market.
  37. ^ a b c "Subcontinent flag carriers struggle". Centre for Aviation. 22 August 2008. Archived from the original on 25 September 2012. Retrieved 25 September 2012.
  38. ^ a b "Belarus aims to privatise Belavia in 2013, with Russian carriers the most likely suitors". Centre for Aviation. 10 May 2012. Archived from the original on 10 May 2012. Retrieved 10 May 2012.
  39. ^ Trimble, Stephen (27 December 2011). "Brussels Airlines to launch JFK service in June". Washington, D.C.: Flightglobal. Archived from the original on 20135-30. Belgian flag carrier Brussels Airlines has announced plans to resume service to North America from 1 June, with an Airbus A330-300 flying daily between Brussels and New York John F. Kennedy International airport. {{cite news}}: Check date values in: |archivedate= (help)
  40. ^ "Bhutan's Drukair Firms Order For One A319". Airwise News. Reuters. 10 July 2012. Archived from the original on 10 July 2012. Retrieved 10 July 2012. Airbus said Bhutan's national airline Drukair has firmed up an order for an Airbus A319 with sharklet fuel-saving wingtip devices.
  41. ^ "Boliviana de Aviacion set to expand as re-launch of Aerosur is unlikely due to government roadblocks". Centre for Aviation. 30 June 2012. Archived from the original on 29 June 2012. Retrieved 29 June 2012. Even though BoA now has a monopoly on domestic trunk routes, it is unlikely the government owned carrier will abuse its new dominant position.
  42. ^ a b "Turkish Airlines To Quit Bosnia JV". Airwise News. Reuters. 14 June 2012. Archived from the original on 14 June 2012. Retrieved 14 June 2012. Turkey's national carrier Turkish Airlines will pull out of a joint venture with Bosnia's flag carrier BH Airlines and transfer its stake to the government free of charge, a senior official of the Bosnian carrier said on Thursday.
  43. ^ a b "Royal Brunei Airlines takes another step forward as it becomes first 787 operator in Southeast Asia". Centre for Aviation. 19 June 2013. Archived from the original on 21 June 2013.
  44. ^ "Bulgaria Air strengthens its European network with new E-Jets, but cost reduction is also essential". 4 June 2012. Archived from the original on 15 June 2012. Retrieved 15 June 2012. As the national carrier of Bulgaria, Bulgaria Air is based at Sofia Airport and operates scheduled services, ad hoc charter services and business jet transportation.
  45. ^ "Cambodia poised for more double-digit growth as Cambodia Angkor Air expands and Qatar Airways enters". Centre for Aviation. 18 January 2013. Archived from the original on 26 February 2013.
  46. ^ "Cambodia launches national carrier with Vietnam's help". Manila Bulletin. Reuters. 28 July 2009. Archived from the original on 16 July 2012. Retrieved 16 July 2012.
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  49. ^ . 4 July 2006 http://www.eyefortravel.com/archive/cabo-verde-airlines-transportes-aereos-de-cabo-verde-tacv-republic-cape-verde%E2%80%99s-flag-carrier. {{cite news}}: Missing or empty |title= (help)
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  51. ^ "BOC Aviation to lease one new A320-200 to LAN". Air Transport World. 3 December 2010. Retrieved 14 February 2012. This deal marks the second time that BOC has worked with Chile's flag carrier.
  52. ^ Kirsty McGregor (10 January 2012). "Chinese carriers could be banned from Europe over ETS row". Flightglobal.com. London. Retrieved 8 February 2012. The China Air Transport Association, which represents the country's four major airlines, including flag carrier Air China, is reported to have said that it would not comply with the European Union's Emissions Trading System (ETS), which came into effect on 1 January.
  53. ^ 2011 Annual Report of Air China (Chinese)
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  55. ^ "Avianca set to debut new Orlando flights in July". Flightglobal.com. 20 May 2011. Retrieved 14 February 2012. Colombia's flag carrier will compete directly with JetBlue Airways, which has operated the Orlando-Bogota pairing since 2009, and operates five weekly flights in the market.
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  58. ^ "First direct Brazil flight to take off in July". Cuba Standard. 29 June 2013. Archived from the original on 7 July 2013. Flag carrier Cubana de Aviación is resuming direct flights to Brazil with a Havana-São Paulo route on July 10, the tourism ministry said in a press release.
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  60. ^ a b "Korean Air Completes Czech Airlines Investment". Airwise News. Reuters. 10 April 2013. Archived from the original on 26 April 2013.
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  63. ^ Cathy Buyck (3 February 2012). "Ecuador may partially privatize TAME". Air Transport World. Ecuador's national flag carrier operates on a mostly domestic network and some international routes to Colombia, Cuba, the Dominican Republic and Panama...
  64. ^ Uphoff, Rainer (9 May 2013). "Ecuador's LAC announces launch of commercial flights". Madrid: Flightglobal. Archived from the original on 21 June 2013. LAC will compete with state-owned Tame, LAN Ecuador and Avianca subsidiary Aerogal.
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