Most likely, you’ve heard that airline alliances make traveling across countries and continents easy. From a commuter’s standpoint, the ease of travel is still improving despite the problems presented by 9/11. From the airliner and business point of view, there are still ways to improve business and profitability.
One way to go about reaching business and profit projections is to enter into an airline alliance. An airline alliance is an agreement among air carriers on many common issues and concerns. These alliances work to allow US air carriers to travel across countries and continents to a partner airline’s hub and priviliges, allowing alliance passengers to transfer to partner flights as connecting flights. Currently, the three largest alliances in use today are Star Alliance, Sky Team and Oneworld Alliance.
Reasons for Alliances
Entering into an airline alliance is a win-win situation for airlines. Here are some of the reasons why being part of an airline alliance is one of the most profitable decisions that an airliner can make.• The airlines enjoy an extensive and optimized network among themselves, including codesharing, which allows others to share priviliges among member airlines.
• An effective overhead cost reduction occurs for the airline, as each alliance member can share information for booking and reservation purposes.
The airline alliance also provides travelers with the following benefits:
• Price discounts as a result of lowered route operational costs
• More choices for departure times on a given route
• More destinations
• Optimized travel time from facilitated transfers
• Broader airport lounge options
• Increased earning capacity for flyer miles
• Lower around-the-world ticket prices
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