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    Air Alliances

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    Hoda Elhadary
    Airline alliances allow travelers to book flights on multiple airlines while providing connections between flights. There are currently three major airline alliances that were formed in 1997: SkyTeam with 13 airlines, Star Alliance with 23 airlines, and Oneworld with 11 airlines. While alliances claim to offer benefits like greater rewards programs and easier connections, critics argue they can reduce availability and increase prices by limiting competition between member airlines. However, alliances also provide cost savings for airlines through shared facilities and operations. For the foreseeable future, alliances appear stable as they remain less expensive than airlines operating completely independently.

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    Air Alliances

    Uploaded by

    Hoda Elhadary
    126 views4 pages
    Airline alliances allow travelers to book flights on multiple airlines while providing connections between flights. There are currently three major airline alliances that were formed in 1997: SkyTeam with 13 airlines, Star Alliance with 23 airlines, and Oneworld with 11 airlines. While alliances claim to offer benefits like greater rewards programs and easier connections, critics argue they can reduce availability and increase prices by limiting competition between member airlines. However, alliances also provide cost savings for airlines through shared facilities and operations. For the foreseeable future, alliances appear stable as they remain less expensive than airlines operating completely independently.

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    Airline alliances allow travelers to book flights on multiple airlines while providing connections between flights. There are currently three major airline alliances that were formed in 1997: SkyTeam with 13 airlines, Star Alliance with 23 airlines, and Oneworld with 11 airlines. While alliances claim to offer benefits like greater rewards programs and easier connections, critics argue they can reduce availability and increase prices by limiting competition between member airlines. However, alliances also provide cost savings for airlines through shared facilities and operations. For the foreseeable future, alliances appear stable as they remain less expensive than airlines operating completely independently.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    126 views4 pages

    Air Alliances

    Uploaded by

    Hoda Elhadary
    Airline alliances allow travelers to book flights on multiple airlines while providing connections between flights. There are currently three major airline alliances that were formed in 1997: SkyTeam with 13 airlines, Star Alliance with 23 airlines, and Oneworld with 11 airlines. While alliances claim to offer benefits like greater rewards programs and easier connections, critics argue they can reduce availability and increase prices by limiting competition between member airlines. However, alliances also provide cost savings for airlines through shared facilities and operations. For the foreseeable future, alliances appear stable as they remain less expensive than airlines operating completely independently.

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    Download as DOC, PDF, TXT or read online from Scribd
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    of 4

    Airline alliances

    I've just come back to Prague from Mexico and although I booked my ticket through Czech Airlines, I never once stepped onto a Czech Airlines plane. I flew KLM to Amsterdam, Delta Airlines to the States, Aero Mexico to Mexico City and the same on the way back. I was travelling on the SkyTeam Alliance who were proud to tell me that they were voted the Best Airline Alliance 2007 in a survey for the Business Traveller Magazine. In the survey subscribers to the magazine were asked which companies have made their business travels more enjoyable and SkyTeam came top due to its reliability, high- quality service and extensive network. My journey back form Mexico made me wonder what the purpose of these alliances is. Since 1997 three multi- airline alliances have developed. The smallest alliance in terms of number of airlines is Oneworld with 11 airlines. The alliance links national giants American Airlines, British Airways, Cathay pacific and Qantas. Next with 13 airlines, is SkyTeam which links Delta, with Air France/ KLM, Korean Air and Aero Mexico, amongst others. Finally with 23 airlines is Star Alliance which includes United Airlines, Lufthansa, ANA of Japan and Air New Zealand. All of them claim that their alliance provides travelers with better services including more staff, greater rewards, easier checkin and smoother transfers. 'All of the alliances allow the business traveler to move through the world more easily and more efficiently', says Nathan Harvey, an airline industry writer. 'Thanks to better connections and shared services the airlines are able to offer more departure times and cheaper fares.' But the traveler is not the only one to benefit- the alliances are also beneficial for the airline companies. They can reduce costs by sharing operational costs, staff, sales offices and maintenance facilities. However, the real driving force behind the alliances is that they are seen as a way for the American companies to overcome protectionist rules in other countries, especially Europe. For example US airlines argued that European carriers had an advantage over US airlines. This was because the European airlines could fly passengers from the States into Europe and then fly them on to their final destinations within Europe, whereas US firms were

    not allowed to operate flights between two European countries. This meant they were having to hand their customers over to their European competitors. Critics of the alliance system claim that the alliances are not as beneficial to the customer as it is claimed. 'When two competing airlines are in the same alliance they share the routes meaning a reduction in services and number of seats available and thus an increase in prices,' claims Rowena Bergson who works for a passenger focus group. 'Also, despite over 40 airlines belonging to alliances much of the world is not covered. In fact, outside North America, Europe and South East Asia coverage is very limited, ' Bergson continues. This is something the alliances seem to be aware of with Chinese, Brazilian and African airlines due to join in the near future. The airline alliances are also facing other threats: low-cost airlines prefer to go in for head- to- head competition rather than forming alliances, while the Open-skies deal between the US and Europe may reduce the need for such cooperation. But, for the foreseeable future the alliances look like they are here to stay, because as David Grossman wrote in USA Today, 'it's far less expensive to sell tickets on someone else's airplane than operate your own.' Read the text quickly and choose the best title for the article. 1 Airline alliances: Which airline is the best? 2 Airline alliances: Travelling by plane is fun 3 Airline alliances: A new way to travel 4 Airline alliances: The pros and cons What is an 'air alliance'? Read the first paragraph and find place names to match 13. 1 The place visited by the writer: __________ 2 One place on the writer's journey: ________ 3 Possibly the writer's hometown: __________ Read the first paragraph and find place names to match 14.

    1 The number of alliances mentioned in the text: ___________ 2 When alliances first started: ______________ 3 The number of airlines in the largest alliance: ____________ 4 the number of airlines in the smallest alliance: ___________ Read the text again and make a list of the advantages and disadvantages of airline alliances. Advantages Disadvantages

    Match 1 10 to a- j to form collocations. Then look at the text to check your answers.

    1 high 2 extensive 3 business 4 departure 5 operational 6 cheaper 7 driving 8 local 9 focus 10 foreseeable

    a quality a quality b future c group d fares e traveler f carrier g force h times i network j costs

    Business Result Intermediate, Oxford University Press.

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