Why Emirates and Etihad Airways are not part of any of the ‘Big 3’ alliances

Airlines around the world operate in a difficult and competitive environment, and as we all know, civil aviation relies on partnerships and codeshare agreements to deliver benefits to all involved.

No conversation in this space would be complete without mentioning the upcoming “Big 3” alliances.

• Oneworld
• star alliance
• sky team

These three major airlines make up some of the world’s largest and best-known airlines, brought together for common benefits to passengers and business opportunities in a variety of markets. The point of these large-scale partnership structures is to allow airlines to offer passengers more options on codeshare flights, share mileage benefits, and share infrastructure around airports around the world for mutual benefit. .

However, not all airlines are convinced of the benefits of entering into such partnerships. Two of the most famous airlines from the Middle East known around the world –emirates airlinesand Etihad Airways are conspicuously absent from all three of the aforementioned alliances.His third major company in the region, Qatar Airways, joinsOneHowever, it appears that Etihad Airways and Emirates did not envisage reaping much benefit from such a partnership, choosing instead to seek more streamlined relationships with other airlines over the years. . Let’s explore this further.

Say no to the “Big Three” alliance

All three major coalitions have powerful players as founding members. Star Alliance was the first of his three companies, founded in 1997 by Lufthansa, Air Canada, Scandinavian Airlines, Thai Airways and United Airlines.

OneWorld was created in 1999 through the merger of British Airways, American Airlines, Cathay Pacific Airways and Qantas Airways. In 2000, a third group entered the fray when Aeromexico, Air France, Delta Air Lines, and Korean Air formed SkyTeam.

Over the years, several global airlines have joined one of these alliances, and it is somewhat safe to assume that Emirates or Etihad Airways would definitely like to potentially join the list of airlines. is. But both airlines have so far resisted this trend.

Photo: Levius | Shutterstock

Both airlines have held this view for quite some time. Almost a decade ago, Emirates president Tim Clark said such partnerships were the “old way” of doing things, but the airline’s chairman, Sheikh Ahmed bin Saeed Al, also based in Dubai. He agreed, saying that airlines that do so cannot do so. If I had joined the alliance, it wouldn’t have become this big. Etihad Airways chose a different path and invested in the airline from locations it considered strategically important. But that wasn’t always necessarily beneficial for airlines. This was especially true when other airlines, such as Jet Airways, went bankrupt.

While there are benefits for airlines to join these major alliances to gain share in unserved markets, Emirates and Etihad Airways seem content with their routes and market penetration.

Photo: Nicholas Economou | Shutterstock

These two airlines enjoy access to almost all major countries and popular destinations, large and small, and secondary destinations that do not have direct service are served by individual airlines. accessed through a codeshare agreement (see below for details). Given the hub-and-spoke model, the two carriers appear reluctant to share traffic on major arterial routes in a large group dynamic with major alliances.

chart your own path

While there may be some benefits to being part of a major airline alliance, it is not without its challenges. Airlines still have to find unique benefits through the maze of complex, multi-product sharing, scheduling, and pricing. Coordinating and planning in a way that benefits everyone involved can sometimes be problematic.

Emirates and Etihad Airways have instead relied more on separate codeshare agreements with other airlines (of course they are not alone), allowing them to negotiate terms and conditions and consolidate the overall deal in a simpler way. Flexibility to manage.

Photo: Eliyahu Yosef Paripa | Shutterstock

Emirates has codeshare partnerships with multiple airlines, many of which are part of global alliances such as United Airlines and Qantas. Recently, I joinedCodeshare agreement with Air CanadaIn addition to signing a memorandum of partnership with Icelandair, we also partnered with ITA Airlines.

Etihad Airways is also actively pursuing individual partnerships to expand its market reach where it sees strategic sense.part of itThe most recent one was Air Serbia.In addition to SAS and SAS, the airline also has transit agreements with Philippine Airlines, Austrian Airlines, and Airlink South Africa.

Photo: Raiken Puppy | Shutterstock

related

Etihad Airways strengthens codeshare and reciprocal route alliances with six airlines

Hundreds of new connections await passengers on Etihad Airways and partner airlines.

evolving dynamics

Emirates and Etihad Airways are not the only airlines to refuse to join the world’s three largest airline alliances. Airline partnerships have evolved in recent years, and many airlines are realizing that a ticket to join a major partnership is not the only way to expand into other regions.

Smaller partners may not be able to enter into larger alliances on equal footing and may find that their return on investment (annual fees, IT costs, etc.) is not all they expected. Partnering with major airlines can even limit the flexibility of these local airlines, which can hurt market share if not carefully considered.

Photo: Karol Ciesulk | Shutterstock

While large-scale alliances certainly work for many airlines, others do not see them as beneficial alliances for various reasons. Apart from Emirates and Etihad Airways, some of the airlines around the world that are not on the main partner list are:Central and South AmericaWestJet focuses on individual bilateral agreements to expand its reach and business.

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