Developments planned by Australia’s Qantas Airways and American Airlines demonstrate membership benefits for global alliance partners seeking to rationalize operations while improving competitiveness. The operators belong to Oneworld, whose members include British Airways (BA), Chile’s LAN, Iberia, and Japan Airlines (JAL), with Malaysia Airlines waiting in the wings. Joint agreements between members can enhance revenues while increasing efficiency.
The recently announced Qantas restructuring includes agreement with Oneworld partners to establish joint ventures and code-share arrangements and use members’ hubs as “regional gateways” to help stimulate international business. American’s development plans include a deal with Qantas on trans-Pacific services. For example, a revised agreement will see Qantas drop London services operated through Bangkok and Hong Kong, while BA will fly those passengers to Europe (and lease Qantas slots at London Heathrow). Qantas will retain its direct London Airbus A380 service through Singapore and pick up Sydney-bound BA passengers at Bangkok and Hong Kong.
