The continued failure of Nigerian airlines to participate in international alliances such as SkyTeam, Star Alliance and One World, is limiting their growth, expansion and revenue generation, BusinessDay investigations have revealed
To this end, most airlines are missing out on the benefits offered by being members of global airline alliances. These include extended networks, often realised through code-sharing agreements and cost reduction from sharing of sales offices. Other benefits include maintenance facilities, operational facilities such as catering or computer systems, and operational staff, such as ground handling personnel at check-in and boarding desks. Other benefits include investments and purchases which enable them negotiate extra volume discounts.
In addition, they can gain more destinations, shorter travel times, as a result of optimised transfers, a wider range of airport lounges shared with alliance members and faster mileage rewards by earning miles for a single account on several different carriers. Alliances could also enable travellers to fly all over the world for relatively low prices.
An airline alliance is an agreement between two or more airlines to co-operate on a substantial level. The three largest passenger airline alliances are Star Alliance, SkyTeam, and Oneworld. Alliances also form between cargo airlines, such as that of WOW Alliance, SkyTeam Cargo, and ANA/UPS Alliance.
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Alliances provide a network of connectivity and convenience for international passengers and international packages. Alliances also provide convenient marketing branding to facilitate travellers making inter-airline codeshare connections within countries. This branding goes as far as to even include unified aircraft liveries among member airlines.
The ability of an airline to join an alliance is often restricted by laws and regulations, or subject to approval by authorities. Antitrust laws play a large role.
Out of the six major airlines in Nigeria, none is in one of the global alliances namely; Oneworld, Star-alliance, Skyteam established by international airlines in quest for network expansion.
According to the International Civil Aviation Organisation (ICAO) website, 27 airlines are in Star-Alliance; 15 are in Skyteam while 12 are in Oneworld, no Nigerian airline is recorded.
This, travel analysts say is part of the reason the airlines growth in traffic figures and revenue have been stunted over the years.
“Alliances between airlines, especially on international markets, have become a dominant feature of the airline industry. Many customers demand a ‘from anywhere to anywhere’ service, which is impossible for one airline to supply efficiently, and there are significant economies of density that can be achieved by merging networks.
