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Published at Thursday, March 28th, 2019 - 00:27:07 AM. Type of airline. By Adelle Jäger.

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.

So regulated had the environment been in fact that an airline often had to resort to the purchase of another carrier just to obtain its route authority. Delta Air Lines for example long interested in providing nonstop service between New York and Florida continually petitioned the CAB for the rights. But the regulatory agency felt that Northeast a small local service carrier often plagued by low traffic financial loss and bad weather because of its route system needed the lucrative Florida route s revenue potential to boost it back to health and granted it the authority instead.



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