Why do airlines form alliances?
Airlines have been forming alliances as far back as the dawn of commercial aviation. In it’s simplest form, an alliance allows for expansion without any investment in aircraft or labor.CodesharesCodeshares allow two airlines to sell a single ticket for a route that may have more than one leg using more than one airline. A code share benefits both parties because either airline can sell tickets for routes that they don’t actually fly.MarketingAirlines participating in an alliance like American Airlines Star Alliance share marketing expenses. This includes online, print, television, and even aircraft paint schemes and logos.International FlightsThe biggest airline alliances involve both domestic and foreign carriers. This allows airlines to offer international flights to destinations that they don’t serve. It expands the reach and market of an airline without requiring additional capital.
