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Published at Sunday, March 31st, 2019 - 15:23:34 PM. Type of airline. By Ailse Hahn.

A more recent development is the airline alliance which became prevalent in the late 1990s. These alliances can act as virtual mergers to get around government restrictions. Alliances of airlines such as Star Alliance Oneworld and SkyTeam coordinate their passenger service programs (such as lounges and frequent-flyer programs) offer special interline tickets and often engage in extensive codesharing (sometimes systemwide). These are increasingly integrated business combinations—sometimes including cross-equity arrangements—in which products service standards schedules and airport facilities are standardized and combined for higher efficiency. One of the first airlines to start an alliance with another airline was KLM who partnered with Northwest Airlines. Both airlines later entered the SkyTeam alliance after the fusion of KLM and Air France in 2004.

Codesharing is the most common type of airline partnership; it involves one airline selling tickets for another airline s flights under its own airline code. An early example of this was Japan Airlines (JAL) codesharing partnership with Aeroflot in the 1960s on Tokyo–Moscow flights; Aeroflot operated the flights using Aeroflot aircraft but JAL sold tickets for the flights as if they were JAL flights. This practice allows airlines to expand their operations at least on paper into parts of the world where they cannot afford to establish bases or purchase aircraft. Another example was the Austrian–Sabena partnership on the Vienna–Brussels–New York/JFK route during the late 60s using a Sabena Boeing 707 with Austrian livery.



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