It’s said there’s power in numbers. In the case of airline alliances, banding together results in benefits for both the carriers and their passengers. The carriers get to expand their networks and cut costs by teaming with one another to service high traffic routes in tandem rather than competing against one another for passengers. In turn, passengers earn miles they can redeem throughout the network, can count on more convenient intra-alliance connections, and are privy to a wider selection of airport lounges and services.

The major international airline alliances as we know them today — SkyTeam, Oneworld and Star Alliance — are the current incarnation of an evolution that began in the 1980s in response to the deregulation of the airline industry in the United States. At that time, major carriers teamed with smaller, regional airlines in the form of codeshare alliances to offer service into secondary markets. The move coincided with the advent of the hub-and-spoke system that now dominates the industry. The next natural progression was to expand the concept to encompass the global market.

So far, it’s been a win-win situation.

“Travelers are always going to face situations where they need to go beyond their favorite airline’s network, or leave at a time when their favorite airline doesn’t fly,” said Tim Cassady, Continental Airlines’ managing director for alliance development. “An alliance adds value in these situations because the traveler can fly on their customary airline — in combination with an alliance carrier — to get where they want to be, when they want to be there.

“Along the way, their frequent flyer status is recognized, they earn frequent flyer miles, and the flight connection and baggage transfer is coordinated,” Cassady said. “In situations where someone can’t fly their preferred carrier all the way, using the alliance is a much better solution than buying a ticket on brand X — or worse, an itinerary involving a combination of brand X and Y — and hoping for the best.”

Continental Airlines’ passengers enjoy the benefits of membership in the SkyTeam Alliance, which traces its roots to 1999 when Delta Air Lines and Air France signed a long-term strategic alliance that laid the foundation for a major global alliance. One year later, on June 22, 2000, the CEOs of Aeromexico, Air France, Delta Airlines and Korean Air met in New York to announce the formation of SkyTeam. At its inception, the alliance offered 6,402 daily flights to 451 destinations in 98 countries. In less then a decade, that initial alliance has grown to include nine member airlines — Aeromexico, Air France, Alitalia Airlines, Continental Airlines, Czech Airlines, Delta Air Lines, KLM, Korean Air and Northwest Airlines — offering passengers a choice of more than 15,000 daily flights to 684 destinations worldwide. In addition, passengers earn miles toward elite status of their preferred SkyTeam member airline and can redeem mileage for travel on any SkyTeam-operated flight. Top-tier frequent flyers traveling business and first class also enjoy access to almost 400 airport lounges worldwide, preferred seating, priority check-in and boarding and priority on airport standby lists.

In retrospect, it may seem that the advent of global airlines was a natural progression within the industry. The concept, though, had to clear at least one significant hurdle — antitrust laws. In August 2001, Air France, Alitalia Airlines, Czech Airlines (which joined the alliance in March 2001) and Delta Air Lines filed a joint application for antitrust immunity with the Department of Transportation seeking approval to expand and coordinate their marketing programs. DOT approved that application the following June.

Fast-forward to 2006 and the concept of the global airline alliance has matured to the point where member airlines share terminals in some airports. There’s a SkyTeam Terminal in Paris (CDG) and a “co-located” facility in Mexico City (MEX). The alliance also has established an “associate” program that serves as a stepping stone for carriers, including current codeshare partners of alliance members, who are interested in alliance benefits, but do not fully meet membership criteria in areas such as network connectivity. The associate program expands SkyTeam’s reach while allowing candidate carriers time and support in their bid for full membership. As a founding member, Delta remains committed to the process.

“SkyTeam customers enjoy conveniently scheduled connections through some of the world’s largest hubs, reciprocal business lounge access and the ability to earn and burn miles on any of the nine SkyTeam partner airlines. Additionally, SkyTeam was selected as the best airline alliance in 2005 by readers of Global Traveler, reflecting that customers recognize our commitment to delivering the highest level of customer experience in the industry,” said Loren Neuenschwander, Delta’s managing director for the Atlantic region.

Oneworld is a leader in another alliance innovation — interline ticketing — billing itself as “the only global alliance with interline ticketing in place between all partners.” The benefit to passengers is simple — their reservations and ticket files contain all relevant information making it easier to track travel and, perhaps more importantly, easier to change travel plans even when changes involve switching out one alliance member for another.

Current Oneworld members include American Airlines, British Airways, Qantas, Cathay Pacific Airways, Iberia Air Lines, LAN, Finnair and Aer Lingus. Royal Jordanian, elected on board in October 2005, will begin offering Oneworld alliance member benefits in late 2006 or early 2007. New alliance member Malév Hungarian Airlines also is set to implement passenger benefits in early 2007 and Japan Airlines announced last October that it will seek membership in the Oneworld alliance.

“Oneworld gives American Airlines customers a truly global network and a range of services and benefits that no one airline could offer on its own,” said Tim Wagner, spokesperson for American Airlines. “The Oneworld alliance makes global travel easier and more rewarding by offering customers the ability to earn and redeem miles on all Oneworld flights, a network that reaches more than 600 destinations in over 135 countries and territories with easy connections at major airports worldwide.”

Around-the-world tickets are another benefit of airline alliances. For example, Star Alliance offers a ticket package that allows up to 15 stopovers for a maximum travel distance of 39,000 miles, effectively rendering the world a truly global community for those passengers who elect to see it all. The Star Alliance network of 16 airlines — Air Canada, Air New Zealand, All Nippon Airways, Asiana Airlines, Austrian Airlines, BMI, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, Spanair, TAP, Thai Airways, United Airlines, US Airways and Varig — reaches 795 airports in 139 countries worldwide. New members South African Airways and Swiss will be fully integrated into the alliance network by mid-2006.

“‘Round the World’ special joint fares provide thousands of itinerary options and flexibility with up to 15 stopovers,” said ANA’s director of market development, Gary Weiss, when asked to describe some of the passenger benefits of ANA’s Star Alliance membership. “Regional fares and air passes are specially priced for choice and flexibility within specific regions. For the business traveler, a multiple-airline corporate agreement is available called ‘Corporate Plus,’ and is designed for global corporations, providing added value, flexibility and savings.

“Sixteen member airlines (soon to be 18) equal more choices than any other alliance,” Weiss said. “Gold-level members enjoy additional benefits such as priority waitlist, priority check-in, lounge access, priority baggage and increased baggage allowance. Additionally, you can fly any Star Alliance member airline to earn and redeem miles or points in your selected frequent flyer program.”

And in the true spirit of “globility,” Star Alliance is looking forward to June when all Star Alliance members, with the exception of Air New Zealand, unite under one roof in Terminal 1 at Tokyo Narita Airport (NRT).

PASSENGER PERKS
Benefits vary by alliance, but generally speaking passenger perks include:
Greater choice of flight routes, schedules and destinations
Enhanced mileage earning power
More choices for redeeming award travel
Around-the-world travel
Elite status access to airport lounges
Elite status priority check-in
Elite status priority boarding
ONEWORLD
Aer Lingus
American Airlines
British Airways
Cathay Pacific Airways
Finnair
Iberia Air Lines
LAN
Malév Hungarian
Airlines (2007)
Qantas Airways
Royal Jordanian (2006)

SKYTEAM
Aeromexico
Air France
Alitalia Airlines
Continental Airlines
Czech Airlines
Delta Air Lines
KLM
Korean Air
Northwest Airlines

STAR ALLIANCE
Air Canada
Air New Zealand
All Nippon Airways
Asiana Airlines
Austrian Airlines
BMI
LOT
Lufthansa
Scandinavian
Airlines
Singapore Airlines
South African
Airways (2006)
Spanair
Swiss (2006)
TAP
Thai Airways
United Airlines
US Airways
Varig