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"National airline" redirects here. For a list of airline companies named National Airlines, see National Airlines (disambiguation).
This article is about transportation companies having flag carrier status. For a naval ship which carries the flag, see flagship. For a person who carries the flag, see Flag bearer. For other uses, see flag carrier (disambiguation).

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, even long after their privatization when preferential rights or privileges continue.[1][disputed – discuss]

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.[2]

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.[3] 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.[4] Thus when an airline operates an international route, between two countries, having been designated[5] 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.[6] The American definition of "U.S.-flag air carrier service" contained in 48 CFR 47.403-1.[7] is based on this first definition. The U.S. requirements under the Fly America Act,[8] 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.

A Boeing 747-400 of UK flag carrier British Airways departs London Heathrow Airport (2015)

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[9] as they were the "main national airline"[10] and often a sign of their country's presence abroad.[11][12]

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[13] or Lebanon's Middle East Airlines[14] for nationalist reasons, or to aid the country's economy, particularly in the area of tourism.[15]

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.[16] 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.[17]

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.[18] The aviation industry has also been gradually deregulated and liberalized,[19] permitting greater freedoms of the air particularly in the United States and in the European Union with the signing of the Open Skies agreement.[20] 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".[21]

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[22] Majority[23]
 Algeria Air Algérie[24] State-owned[25]
 Angola TAAG Angola Airlines[26] Majority[27]
 Argentina Aerolíneas Argentinas[28] State-owned[28]
 Australia Qantas[29] None State-owned until 1992.[30]
 Austria Austrian Airlines[31] None – owned by Lufthansa[32] State-owned until 5 December 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[39]
 Belgium Brussels Airlines[40] None – owned by SN Airholding, which biggest share holder (45%) is Lufthansa[32][41]
 Bhutan Druk Air[42] None
 Bolivia Boliviana de Aviación[43] State-owned[44]
 Botswana Air Botswana State-owned
 Brunei Royal Brunei Airlines[45] State-owned[45]
 Bulgaria Bulgaria Air[46] Ownership – Balkan Hemus Group EAD 99.99%, State (0.01%)[47]
 Burkina Faso Air Burkina
 Burundi Air Burundi State-owned
 Cambodia Cambodia Angkor Air[48] Majority (51%)[49]
 Cameroon Camair-Co[50]
 Canada Air Canada[51] None State-owned until 1989.[52]
 Cape Verde TACV[53]
 Cayman Islands Cayman Airways State-owned (100%)[54]
 Chad Toumaï Air Tchad
 Chile LATAM Chile[55][56] None State-owned until September 1989.[57]
 China Air China[58] Majority (51.8%)[59] State-owned until 2004, and indirectly control through parent company until now.[60]
 Colombia Avianca[61] None
 Croatia Croatia Airlines[62] Majority (98%)[63]
 Cuba Cubana de Aviación[64]
 Czech Republic Czech Airlines[65] Majority (56%)[66]
 Democratic Republic of the Congo Congo Airways[67] State-owned[67]
 Denmark Scandinavian Airlines[68] Joint-Venture[nb 1]  
 Norway
 Sweden
 Djibouti Air Djibouti[70] Joint venture
 Ecuador TAME[71] State-owned[72]
 Egypt EgyptAir[73] State-owned[74]
 Equatorial Guinea Ecuato Guineana
 Eritrea Eritrean Airlines State-owned
 Estonia Nordica[75] State-owned[75]
 Ethiopia Ethiopian Airlines[76] State-owned
 Fiji Fiji Airways[77] Majority (51%)[78]
 Faroe Islands Atlantic Airways[79]
 Finland Finnair[80] Majority (55.8%)[81]
 France Air France[82] 18% share[83]
 French Polynesia Air Tahiti Nui[84] Majority[85]
 Georgia Georgian Airways None
 Germany Lufthansa[86] None State-owned until 1994;[87] remaining government shares were sold in 1997.[88]
 Greece Aegean Airlines[89]
 Greenland Air Greenland[90]
 Guernsey Aurigny Air Services[91] State-owned[92]
 Guyana Caribbean Airlines[93] None
 Hong Kong Cathay Pacific[94] Cross Holding with Air China (29.9%)[95][additional citation(s) needed]
 Iceland Icelandair[96]
 India Air India[97] State-owned[97]
 Indonesia Garuda Indonesia[98] Majority
 Ireland Aer Lingus[99] None- owned by International Airlines group, the parent company of British Airway and Iberia [100] State-owned until September 2006.[101][102]
 Iran Iran Air 100% state-owned[103]
 Iraq Iraqi Airways[104]
 Israel El Al[105] Minority (~1.1%)[106] State-owned until June 2004.
 Italy Alitalia[107] Minority (19.48%)[108] State-owned until 2008, and indirectly control through a state-owned company since 2013.[109][110]
 Ivory Coast Air Côte d'Ivoire[111] Minority (49%)
 Jamaica Caribbean Airlines[112] Minority (16%)
 Japan Japan Airlines[113] None State-owned until 1987.
 Jordan Royal Jordanian[114]
 Kazakhstan Air Astana[115] Majority (51%)[116]
 Kenya Kenya Airways[117] Minority (29.8%)[118]
 Kiribati Air Kiribati
 Kuwait Kuwait Airways[119] State-owned[120]
 Laos Lao Airlines[121] State-owned[122]
 Latvia Air Baltic[123] Majority (99.8%)[124]
 Lebanon Middle East Airlines[125]
 Libya Afriqiyah Airways[126] State-owned[127]
Libyan Airlines[128] State-owned[128]
 Luxembourg Luxair[129] Majority (73.86%) [130]
 Macau Air Macau[131] Minority (5%)
 Madagascar Air Madagascar[132] Majority
 Malawi Malawian Airlines[133] Majority (51%)[133]
 Malaysia Malaysia Airlines[134]
 Maldives Maldivian
 Malta Air Malta[135] Majority[136]
 Mauritania Mauritania Airlines[137]
 Mauritius Air Mauritius[138]  
 Mexico Aeroméxico None State-owned until 2007.
 Moldova Air Moldova
 Mongolia MIAT Mongolian Airlines[139] State-owned[140]
 Montenegro Montenegro Airlines[141]
 Morocco Royal Air Maroc[142] State-owned
 Mozambique LAM Mozambique Airlines[143] State-owned
 Myanmar Myanmar National Airlines[144] State-owned[145]
 Namibia Air Namibia[146] State-owned (100%)[147]
 Nauru Nauru Airlines[148] State-owned[148]
 Nepal Nepal Airlines[149] State-owned
 Netherlands KLM[150] Minority (6%)[151][needs update]
 New Zealand Air New Zealand[152] Majority (53%)[153] State-owned until 1989, partially re-nationalized in 2001.
 North Korea Air Koryo[154] State-owned[155]
 Oman Oman Air[156] Majority[157]
 Pakistan Pakistan International Airlines[158] State-owned[159]
 Panama Copa Airlines None
 Papua New Guinea Air Niugini[160]
 Philippines Philippine Airlines[161]
 Poland LOT Polish Airlines[162] Majority (93%)[163]
 Portugal TAP Portugal[164] Majority (50%) [165]
 Qatar Qatar Airways State-owned
 Republic of the Congo Equatorial Congo Airlines[166] Majority (70%)[citation needed]
 Réunion Air Austral[167]
 Romania TAROM[168] Majority (95%)[169]
 Russia Aeroflot[170] Majority (51%)[171]
 Rwanda RwandAir[172] State-owned[172]
 Saint Vincent and the Grenadines SVG Air
 Samoa Virgin Samoa[173] Joint-venture, minority (49%)[174]
 São Tomé and Príncipe STP Airways None
 Saudi Arabia Saudia[175] Majority
 Serbia Air Serbia[176] Majority (51%)[177]
 Seychelles Air Seychelles[178] None
 Solomon Islands Solomon Airlines[179] State-owned (100%)[180]
 Sierra Leone Arik Air None
 Singapore Singapore Airlines[181] 54.5% through Temasek Holdings[182]
 Slovenia Adria Airways[183] None[183]  
 South Africa South African Airways[184] State-owned[185]
 South Korea Korean Air[186] None[187]
 Spain Iberia[113] Minority (5%)[188]
 Sri Lanka SriLankan Airlines[189] State-owned[190]
 Sudan Sudan Airways State-owned[191]
 Suriname Surinam Airways[192] State-owned[193]
 Eswatini Swaziland Airlink Joint venture
 Switzerland Swiss International Air Lines[194] None – owned by Lufthansa[32]
 Syria Syrian Air[195] State-owned
 Taiwan China Airlines[196] None State-owned until 1991. 51.28% held by non-profit Civic Aviation Development Foundation.[197]
 Tajikistan Tajik Air State-owned
 Tanzania Air Tanzania State-owned
 Thailand Thai Airways International[198] Majority (51%)
 Trinidad and Tobago Caribbean Airlines[199] Majority (84%)[200]
 Tunisia Tunisair[201] Majority[201]
 Turkey Turkish Airlines[202] Minority (49%)
 Turkmenistan Turkmenistan Airlines[203] State-owned
 Ukraine Ukraine International Airlines[204]  
 United Arab Emirates Etihad Airways[205] State-owned[206]
Emirates[207] State-owned
 United Kingdom British Airways[208] None Privatised in 1987.[209]
 Uzbekistan Uzbekistan Airways[210] Majority
 Venezuela Conviasa[citation needed] State-owned
 Vietnam Vietnam Airlines[211] State-owned[211]
 Vanuatu Air Vanuatu[212]
 Yemen Yemenia[213] Majority
 Zimbabwe Air Zimbabwe[214] State-owned[214]

Notes and references

Notes

  1. ^ SAS is partly owned by the governments of Denmark, Norway and Sweden, and is the flag carrier for all three nations.[68][69]

References

  1. ^ Don Sull (1999). "Case Study easyJet's $500 Million Gamble". European Management Journal Vol. 17, No. 1. pp. 21–22.
  2. ^ "flag carrier definition". Businessdictionary.com. Archived from the original on 23 October 2013. Retrieved 22 May 2009.
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  4. ^ 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)
  5. ^ "Air Agreements and Designated Air Carriers". [Canadian Transportation Agency]. Archived from the original on 21 March 2014. Retrieved 6 December 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  6. ^ P. Paul Fitzgerald (2011). "In defense of the nationality of aircraft". Annals of Air and Space Law,.{{cite news}}: CS1 maint: extra punctuation (link)
  7. ^ "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)
  8. ^ Guidelines for International Travel Paid for by the Government. Wright State University. Archived 7 October 2013 at the Wayback Machine
  9. ^ Paul Stephen Dempsey (1991). "Airline Management; Strategies for the 21st Century". Coast Aire Publication. p. 299.
  10. ^ "flag airline definition". [MacMillan Dictionary]. Archived from the original on 7 July 2012. Retrieved 9 December 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  11. ^ 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)
  12. ^ 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)
  13. ^ Arnold Sherman (1972). "To the Skies: The El Al Story". Bantam Books,.{{cite news}}: CS1 maint: extra punctuation (link)
  14. ^ 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)
  15. ^ 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)
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  17. ^ 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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  20. ^ "Open Skies Partners". [U.S. State Department]. Archived from the original on 4 November 2013. Retrieved 6 December 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  21. ^ Joanna Mastalerek (2006). "The Future of the Open Skies Agreements after the ECJ judgements - Legal and Economic Aspects". GRIN Verlag. p. 12.
  22. ^ "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.
  23. ^ [1] Archived 28 January 2012 at the Wayback Machine
  24. ^ "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...
  25. ^ "Air Algerie to spend $762 million upgrading its fleet". Middle East Online. 14 December 2013. Archived from the original on 25 June 2014.
  26. ^ "TAAG Angola Airways boosts capacity, justifying Angola's investment in airport infrastructure". CAPA Centre for Aviation. 22 July 2013. The investment is beginning to pay dividends with flag carrier TAAG Angola Airlines increasing capacity by nearly 40% in the past year. Archived 6 October 2014 at the Wayback Machine
  27. ^ Hofmann, Kurt (6 May 2016). "TAAG Angola Airlines' new 777-300ER to fly on Portugal route". Air Transport World. The Angolan government is the majority shareholder in TAAG. Archived 6 May 2016 at the Wayback Machine
  28. ^ a b "Argentina: Aerolineas Argentinas faces a tough turnaround with government's new liberal mindset". CAPA Centre for Aviation. 19 September 2016. Archived from the original on 21 September 2016. At the same time, Argentina's state-owned flag carrier Aerolineas Argentinas is attempting to transition to a more commercially minded airline after years of bleeding cash and being propped by the former Argentinian government.
  29. ^ Schofield, Adrian (8 July 2014). "More maintenance jobs axed in Qantas cost-cutting effort". Air Transport World. Archived from the original on 8 July 2014. Australian flag carrier Qantas is laying off another 167 staff from its engineering department, the latest step in the airline's plan to cut 5,000 positions from its workforce within three years.
  30. ^ "Accelerating Change in the 1990s". Qantas. 31 March 2002. Archived from the original on 22 January 2014. Retrieved 16 August 2013.
  31. ^ Hofmann, Kurt (4 December 2015). "Austrian Airlines launches Vienna-Havana services". Air Transport World. The Austrian flag carrier recently expanded services into North America with the launch of Boeing 777 5X-weekly Vienna-Miami services on Oct. 16. Archived 6 December 2015 at the Wayback Machine
  32. ^ a b c "Lufthansa Group Corporate Structure". Lufthansa AG. Retrieved 8 September 2014.
  33. ^ "AUA-Verkauf besiegelt: Kranich soll Flügel verleihen «". Diepresse.com. 31 March 2010. Archived from the original on 16 December 2008. 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. ^ Blachly, Linda (17 June 2015). "Bahamasair orders five ATR -600 aircraft". Air Transport World. Bahamasair, the national flag carrier of Bahamas, has placed a firm order for two 70- seat ATR 72-600s and three 50-seat ATR 42-600s. Archived 17 June 2015 at the Wayback Machine
  36. ^ Dron, Alan (18 January 2016). "Gulf Air plans 'major aircraft announcements' on Jan. 21". Air Transport World. Bahrain national carrier Gulf Air is planning "some major aircraft announcements" on Jan. 21, the opening day of the three-day Bahrain International Air Show (BIAS). Archived 19 January 2016 at the Wayback Machine
  37. ^ "Biman Bangladesh nears completion of dramatic fleet renewal, but its outlook remains challenging". Centre for Aviation. 3 July 2014. Archived from the original on 4 July 2014. Biman is one of Asia's smallest flag carriers, operating only 10 aircraft on a network of 22 destinations, including 19 international and three within Bangladesh.
  38. ^ Borodina, Polina (26 June 2014). "Belavia orders three Boeing 737-800s". Air Transport World. Archived from the original on 27 June 2014. This is the first direct purchase of Boeing aircraft for the Belarus flag carrier.
  39. ^ "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.
  40. ^ Trimble, Stephen (27 December 2011). "Brussels Airlines to launch JFK service in June". Washington, D.C.: Flightglobal. Archived from the original on 30 May 2013. 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.
  41. ^ "Corporate History of Brussels Airlines". SN Airholding. Retrieved 9 August 2014.
  42. ^ "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.
  43. ^ Clark, Oliver (24 April 2016). "ROUTES: Air Nostrum still keen on Latin American growth post-Sol". Krakow: Flightglobal. Archived from the original on 21 August 2016. BoA Regional, a new joint venture in Paraguay with Bolivia's national carrier Boliviana de Aviacion, is "going well" and the airline is busy "developing new routes and working on new traffic rights to Brazil", says Oliver.
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  47. ^ "Archived copy". Archived from the original on 23 December 2015. Retrieved 22 December 2015. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)CS1 maint: archived copy as title (link)
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  49. ^ "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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  51. ^ Blachly, Linda (31 July 2015). "Aircraft News-July 31, 2015". Air Transport World. The Canadian flag carrier took delivery of its first Dreamliner in May 2014 and will receive a total of 29 new 787-9s by 2019, in addition to eight 787-8 aircraft already in operation. Archived 1 August 2015 at the Wayback Machine
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  56. ^ "LATAM Kicks Off Regular Flights, Announces Johannesburg". Airways News. 5 May 2016. Retrieved 11 May 2016.
  57. ^ LAN Cargo. "History". Retrieved 1 June 2014.
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  59. ^ 2011 Annual Report of Air China (Chinese)
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  70. ^ "Africa's Air Djibouti continues re-fleeting". Air Transport World. 11 August 2016. Archived from the original on 13 August 2016. African flag carrier Air Djibouti has taken delivery of its first Boeing 737 as it prepares to launch commercial operations.
  71. ^ Cathy Buyck (31 October 2011). "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... (subscription required)
  72. ^ 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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  211. ^ a b "Vietnam Airlines pre-IPO outlook: rapid growth as 787s & A350s arrive, but competition intensifies". Centre for Aviation. 1 April 2014. Archived from the original on 29 June 2014. The government-owned flag carrier has been focusing in recent years on short-haul and medium-haul expansion using its A321 fleet.
  212. ^ "All About Air Vanuatu". Archived from the original on 1 November 2013.
  213. ^ Dron, Alan (30 March 2015). "Yemenia suspends services". Air Transport World. The Yemen national carrier said it was suspending flight operations "until further notice due to the prevalent unfavorable operational situation and restriction imposed on Yemen airspace." Archived 31 March 2015 at the Wayback Machine
  214. ^ a b "flyafrica.com and fastjet give Zimbabwe its first taste of LCCs with local start-up". Centre for Aviation. 2 July 2014. Archived from the original on 2 July 2014. Government-owned flag carrier Air Zimbabwe currently operates only two international routes although it has been trying for some time to resume more international services.

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