Tuesday, October 9, 2012

Potential Shakeup Looms for Airline Alliances

The Star Alliance, Sky Team and One World are dealing with the ripples of side alliances taking shape this week between members within these alliances that will bring into question what members expect these partnerships to achieve and the new conflicts that they bring in. At the center of it all are 3 Middle East carriers, wielding lots of cash, new facilities and equipment that are jockying to outdo each other by finding the right partners to leverage their ability to sell more seats. Qatar Airways struck a deal with One World (led by British Airways and American Airlines). This may conflict with efforts by American to also link up with Emirates, a rival of Qatar Airways. Etihad of the UAE, a rival of both carriers is now in alliance with the Air France/KLM Group a key partner of the Sky Team, and noticeably missing is the name of Delta, the American partner of the Sky Team. Meanwhile Emirates has done a codeshare deal with Qantas. Confused? The dust is yet to settle and the shakeup might just be the beginning of the redefinition of what these alliances, joint ventures and partnerships will become going forward. The biggest losers are likely to be the junior partners within these alliances that will come to find out there is no room for them at the big dance. www.premieretravel.com