Airline alliances
agreements with other alliance partners. In broader terms, global alliances improve
buyer choice because frequent flyer programmes (FFPs) can be shared across a number of airlines and points accrued, regardless of the member airline used, says Corrie Long, air product manager, Capita Travel and Events. It is now also possible to have relation-
ships with the majority of the world’s airlines while maintaining contact with just one or two airline managers per venture, she adds. “Irregular contact with some individual airlines can mean that customer service issues are less easily resolved. However, we view increasing airline consolidation as an opportunity for our business and our customers,” says Long. Alliances can provide progress and
➔ “The main advantage of negotiating jointly
with several carriers is having only one point of contact. This aligns the quality of the offered pricing grid and decreases the number of negotiation meetings and administration. Pricings and legalities are covered together. Marembaud continues, “On the other hand, alliances mean there is less flexibility for individual offers by airlines in the alliance. This is a disadvantage where there are competitors on the same routes and means a slight decrease in the level of savings of an alliance contract compared to contracting with each carrier individually. “If an interline agreement is not covered
by a codeshare, then it’s very hard to get any private fares on these routes.” Marembaud says the only inclusive ’global’
contract (providing corporate fares for a full set of airlines in the same alliance) is the one handled by Lufthansa Group for Star Alliance members. She says that SkyTeam is currently testing with key clients, but the oneworld alliance currently has nothing similar. Will Hasler, business travel manager for
PricewaterhouseCoopers (PwC) in the UK, adds: “Although we’re a global company, we operate from separate centres around the world, meaning that we mostly contract on a local or regional basis. He continues, “That said, we have entered
into global agreements, but they’re frag- mented and not easy to assimilate. For example, we have an agreement with Star Alliance, which is generally accepted as the
r“ It is now also possible to have ”
most cohesive alliance. But it’s not yet clear how this will work or whether we will revert to dealing with just Lufthansa.” Mark Clarkson, commercial director for
aviation intelligence provider OAG, agrees that Star is probably the tightest-knit of the three big alliances, offering some tangible benefits for buyers. In comparison, oneworld and SkyTeam
are more ‘promiscuous’ in their approach, says Clarkson. “Overall, global alliance programmes generally don’t have much to offer the corporate buyer apart from scheduling integration. With all the challenges and restrictions in place, I can’t see that situation altering much,” he says. Clarkson believes the concept of open
skies or market deregulation may slowly be gathering pace across the globe but inevitably there will always be some form of national market or legal protectionism for global alliances to overcome. In turn, and until full deregulation, global
programmes (compared to individual joint venture or bilateral deals) won’t have much relevance for buyers. Clarkson refers to the Middle East as
elationships with the majority of the
world’s airlines while maintaining contact with just one or two airline managers per venture
74 THE BUSINESS TRAVEL MAGAZINE
potentially changing the purchasing landscape for the foreseeable future. Until very recently, when Qatar Airways joined oneworld, all three of the world’s most profitable, fastest-growing and influential airlines in the primary hub region have refused to embrace the big group alliance concept. Instead, they have preferred to forge their own equity share partnerships, joint ventures or bilaterals regardless of whether or not their partners are existing alliance members. Together with massive new aircraft orders,
Emirates and Etihad continue to pursue these autonomous global outreach models, spurning the attentions of the big alliances. In the meantime, Qatar Airways has made clear that it will continue to operate bilateral
development updates and data reporting for all carriers within the grouping they represent, she adds. “That’s time efficient from an agency
supply chain and customer account management perspective.”
ONEWORLD COMES CLOSER
The scheduling fortunes of oneworld have notably improved over the Gulf and South America this year. This is due, respectively, to new members Qatar Airways and LATAM Airlines, the merged LAN and TAM airlines. TAM was originally a member of Star Alliance. The oneworld alliance also anticipates membership of the merged US Airways and American Airlines, one of its lead carriers along with British Airways/Iberia (IAG). Additional recent recruits to oneworld include SriLankan Air, Malaysian Airlines and Air Berlin. Qantas remains a member of oneworld despite forging
a separate partnership with non-aligned Emirates for flights over The Gulf.
WHO BELONGS WHERE
ONEWORLD: Air Berlin, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, LAN, Malaysia Airlines, Qantas, Qatar Airways, Royal Jordanian, S7 Airlines SKYTEAM: Aeroflot, Aerolíneas Argentinas, Aeromexico, Air Europa, Air France, Alitalia, China Airlines, China Eastern, China Southern, Czech Airlines, Delta Air Lines, Kenya Airways, KLM, Korean Air, Middle East Airlines, Saudia, TAROM, Vietnam Airlines, Xiamen Air STAR ALLIANCE: Adria Airways, Aegean Airlines, Air Canada, Air China, Air New Zealand, ANA, Asiana Airlines, Austrian, Avianca, Brussels Airlines, Copa Airlines, Croatia Airlines, EGYPTAIR, Ethiopian Airlines, EVA Air, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shenzhen Airlines, Singapore Airlines, South African Airways, SWISS, TAM Airlines, TAP Portugal, THAI, Turkish Airlines, United, US Airways
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