Global airline alliance membership has been growing with the alliances recruiting new members to extend their geographic coverage and boost passenger benefits.  In 2003 the three main alliances combined had 29 member airlines; full membership now numbers 41 airlines (plus 26 affiliates/associates).

Star, SkyTeam and oneworld combined, account for almost 80% of the total world airline capacity (ASKs), 78% of world RPK’s and 73% of passengers carried (Star Alliance).

Share of Passengers Carried on Alliance Networks

Source: Star Alliance Network Facts and Figures (July 2008),
based on IATA World Air Transportation Statistics, published 2007

The alliances are increasingly looking towards Asia, especially China, to boost network coverage:

• China Southern Airlines has joined the SkyTeam alliance. The first carrier from mainland China to join an alliance.

• Star Alliance has signed up Air China and Shanghai Airlines, and has accepted the application of Air India to become a future member.

• Dragonair has joined oneworld as an affiliate.

China Eastern Airlines is the last of China's major three carriers yet to commit to joining an alliance. China Eastern has links with oneworld members American Airlines, Qantas, Cathay Pacific and JAL and has expressed interest in joining the oneworld alliance.  Hainan Airlines, China’s fourth largest carrier and a partner of oneworld member Malev, has also expressed interest in joining the oneworld alliance.

The Star Alliance becomes the first airline alliance to secure a member in India.  The invitation to join follows Air India’s merger with India’s domestic carrier Indian Airlines.

The alliances also see scope for growth in Latin America and in Russia.

Other recent developments include the first “alliance switch” as Continental announced it intention to move from SkyTeam to the Star Alliance, and the departure from the main alliances of the restructured airlines, Aer Lingus and Varig.  Aer Lingus has since announced an industry-first strategic partnership linking low-fare networks with JetBlue Airways. 

The alliances are an important factor in airline development with members generating marketing and operational benefits.  Frequent flyer programs and integrated route networks are amongst the benefits evident to alliance customers.  Airlines not flying particular routes can offer their customers extended network benefits through alliances.  Events such as September 11, and developments since, accelerate rather than create trends towards consolidation. 

Air China, in its application to join the Star Alliance, stated that: "With economic globalisation and open skies, the competition in the airline industry will become more and more severe. No one airline can create a global network by itself.  In order to survive and develop, airlines have to cooperate with other partners in various forms including multilateral alliance cooperation."

(1) As at February 2009, incl member elect Mexicana

(2) Downloaded March 2009. * Mainline Fleet

(3) Compiled December 2008

Recent changes –

oneworld:

oneworld, in a review of its first ten years of operation, estimates that the alliance has generated US$5 billion in revenues for its member airlines through its alliance fares and sales products.  Around two-thirds of this amount is regarded as "incremental" revenue; revenue which would not have been generated if oneworld did not exist.

Over the past decade:

•     Membership has increased from an initial five members to ten, plus around 20 affiliate carriers and one member elect.

•     Revenues from alliance fares and sales activities are estimated to have increased 330%; from US$200 million in 1999 to US$850 million in 2008.

•      Revenues generated by member airlines from their passenger activities have risen 100%; from a collective US$39 billion in 1999 to US$78 billion in their latest full financial years.

•      Interline revenues, from passengers transferring between flights operated by one member airline to those of a partner in the alliance, are up 153%; from less than US$1 billion in 1999 to an estimated US$2.5 billion in 2008.

•     Traffic, in terms of passenger revenue kilometres, increased by 78% on a 62% increase in capacity.

S7 is to become part of oneworld, offering the alliance's full range of services, benefits and fares, during 2010.  S7 serves 72 destinations worldwide - 38 of them in Russia.  It will add 54 cities, 35 of them in Russia, and 8 countries to the oneworld map. 

In April 2008 Mexicana accepted a formal invitation to join oneworld.  Its subsidiary Click Mexicana will join at the same time, as an affiliate member.  The joining process is expected to take 12 to 18 months to complete. Mexican will add 26 destinations.

Dragonair joined oneworld as an affiliate on 1 November 2007, the 11th airline to join the alliance.  Dragonair added a total of 15 new destinations to oneworld, 12 of them in Mainland China, giving oneworld a total of 22 points served in the country.  Dragonair added one new country, Cambodia, and from 2 December it added Nepal to oneworld's timetable.

oneworld affiliates GB Airways and Loganair will withdraw from the alliance during 2008, following the ending of their franchise agreements with British Airways.

From 1 April 2007 Japan Airlines, Malév Hungarian Airlines and Royal Jordanian started offering the alliance's services and benefits as full members, the first new recruits for more than six years-

• Japan Airlines (JAL) added nearly 50 destinations - almost 40 of them in Japan, and the rest in China and elsewhere in Asia - and one new territory, Guam.

• Malév Hungarian Airlines added ten cities, all of them in Central and Eastern Europe, and two countries – Montenegro and the Republic of Macedonia.

• Royal Jordanian Airlines added two countries, Iraq and Yemen, and 11 cities.  It was the first carrier from the Middle East to be elected on board any of the global airline groupings.

JAL, Royal Jordanian and Malév reportedly increased oneworld's passenger capacity by a fifth, taking its share of the total global air transport industry to almost 20 per cent.

Seven other airlines joined at the same time as affiliate members - LAN Argentina and LAN Ecuador, and JAL associates JALways, Japan Asia Airways, JAL Express, J-AIR and Japan Transocean Air.

Aer Lingus left the alliance on 1 April 2007, as it repositioned itself as a low fares point to point carrier.  Aer Lingus retains bilateral links with a number of the grouping's key member airlines.

oneworld affiliate BMED withdrew from the alliance in late October 2007, following the purchase of the airline.  BMED was operating as a franchisee of British Airways.

SkyTeam:

Continental Airlines and Copa Airlines will exit SkyTeam following their last scheduled flights on October 24, 2009.  Continental Airlines had announced in June 2008 that it intended to terminate its existing agreements with SkyTeam members and obtain the necessary approvals to enter the Star Alliance.

SkyTeam and Vietnam Airlines signed a preliminary agreement in April 2009 confirming the airline’s first step towards full membership into the SkyTeam alliance.  The airline is expected to become a part of SkyTeam during the year 2010, adding 17 unique destinations to the network, including 14 cities in Vietnam.

Delta Air Lines and Northwest Airlines merged on 29 October 2008, creating a new airline, called Delta.

China Southern Airlines officially became the 11th full member of SkyTeam on 15 November 2007, making the alliance the first to add a carrier from mainland China. China Southern Airlines signed the initial joining agreement in August 2004

In September 2007 Air Europa, Copa Airlines and Kenya Airways, became the alliance's first official Associate carriers, adding 47 new destinations and nearly 500 additional daily flights to the network.  SkyTeam Associate Airlines operate under the direction of a Sponsor Member.  TAROM of Romania is expected to become an Associate carrier in late 2009.

In June 2006 SkyTeam announced Portugalia Airlines as an Associate Airline candidate. Portugalia has since been acquired by the TAP Group (TAP Air Portugal is a member of the Star Alliance). 

In April 2006 Aeroflot officially the alliance's tenth member. SkyTeam had signed a Memorandum of Understanding (MOU) with Aeroflot in May 2004.

In January 2006, Middle East Airlines, Air Liban (MEA), Lebanon's national carrier, took the first steps toward becoming a SkyTeam Associate Airline.

In June 2005 SkyTeam had announced the finalization of the alliance's Associate Program and named the first carriers selected to begin the joining process: Air Europa of Spain; Copa Airlines of Panama; Kenya Airways of Kenya; and Tarom of Romania.  

Star:

In May 2009 Star Alliance accepted the membership application of Aegean Airlines.  The airline covers 23 routes in Greece, as well as a further 24 international routes.

Brussels Airlines’ application to become a future member of the alliance was accepted in December 2008.  The airline has a fleet of 45 aircraft and operates some 300 daily flights to 55 European airports and 15 African destinations.  The Star Alliance network will expand to cover 1,074 destinations in 174 countries after the four future members join.

In October 2008 Brazilian carrier, TAM Airlines, was accepted as a future member.  TAM already has codeshare agreements with Star Alliance member carriers Air Canada, Lufthansa, TAP Portugal and United and will add 36 new destinations to the Star Alliance network.

EgyptAir became the 21st member of Star Alliance in July 2008.  EgyptAir added nine additional airports into the network and brought 1,624 weekly flights to 69 destinations around the world.

Continental Airlines has been invited to join the alliance following its signing of a major bilateral framework agreement with Star Alliance member United, as well as the announcement of an enhanced transatlantic partnership of the two US airlines and Star Alliance member carriers Air Canada and Lufthansa.  Continental leaves the SkyTeam Alliance.

Turkish Airlines became the 20th Star Alliance member airline in April 2008, adding 31 destinations – mainly in Turkey, Central Asia and the Middle East.  Turkish Airlines’ membership application was accepted in December 2006

Air India’s application to become a member of the alliance was accepted in December 2007.

Air China and Shanghai Airlines formally joined the Star Alliance on 12 December 2007 (after initially agreeing to join in May 2006).  Star Alliance then had 19 member carriers operating 17,000 daily flights to 897 destinations in 160 countries.

VARIG Brazilian Airlines is no longer a member of Star Alliance as of 31 January 2007, due to the restructuring of the airline.

In April 2006 SWISS International Air Lines and South African Airways (SAA) became the 17^th and 18th members of the alliance. SAA was the first airline from Africa to have joined such an alliance. SWISS’s planned acquisition by Lufthansa and its integration into the Lufthansa Group commenced in March 2005.  

 The following table lists the latest alliances and their memberships. 

World Airline Alliances

Note: Delta Air Lines and Northwest Airlines merged on 29 October 2008, creating a new airline, called Delta.

Updated 27 May 2009

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