How do airline partnerships impact your network planning?

1 Benefits of partnerships

One of the main benefits of partnerships is that they allow airlines to expand their network reach and offer more destinations and frequencies to their customers. By partnering with other airlines, you can access markets that you may not be able to serve on your own, either due to regulatory, operational or competitive constraints. For example, if you are a European carrier and you want to offer flights to Asia, you can partner with an Asian carrier that has slots and rights to fly to various Asian cities. This way, you can offer your customers more options and convenience, while sharing the risks and costs with your partner.

2 Challenges of partnerships

However, partnerships also come with some challenges that you need to consider in your network planning. One of the main challenges is to align your schedules, fares, products and services with your partner's, so that you can offer a seamless and consistent experience to your customers. This may require some adjustments and compromises in your network design, such as coordinating your departure and arrival times, matching your seat classes and amenities, and harmonizing your pricing and revenue management strategies. You also need to ensure that your partnership is compliant with the relevant antitrust and competition laws, which may limit your degree of cooperation and coordination with your partner.

3 Types of partnerships

Airlines can engage in different types of partnerships, depending on their level of integration and cooperation. A codeshare is when two or more airlines agree to sell seats on each other's flights under their own flight numbers, offering more destinations and frequencies to customers without operating additional flights. Joint ventures involve two or more airlines sharing revenues, costs and risks on certain routes or markets, while coordinating schedules, fares, products and services. An alliance is a formal network of partners offering reciprocal benefits and services such as frequent flyer programs, lounge access, priority check-in and boarding, baggage handling and customer service. Lastly, interline partnerships involve two or more airlines accepting each other's tickets and baggage for connecting flights, providing convenience and flexibility to customers. Each of these partnerships have varying degrees of integration and cooperation, with some partners competing or collaborating on routes.

4 Factors to consider

When considering whether to enter into a partnership with another airline, and what type of partnership to choose, you need to take into account several factors. These include your strategic objectives and vision, your network characteristics and performance, your partner's profile and compatibility, as well as the market conditions and opportunities. Are your goals and values in alignment with a potential partnership? Do you have a strong hub, a balanced portfolio, or a competitive advantage? Is your partner compatible with your vision, culture, standards, and expectations? What are the opportunities and threats in the market? How is the demand, supply, competition, and regulation in the market? How is the market expected to evolve in the future? Answering these questions will help you make an informed decision about whether to enter into a partnership and what type of partnership to choose.

5 Best practices

To ensure that your partnership is successful and beneficial for your network planning, you should conduct a thorough analysis and evaluation of your potential partner and the market. This includes identifying the synergies, gaps, risks, and trade-offs that a partnership entails, as well as setting clear and realistic objectives and expectations. Additionally, it is important to establish a strong and transparent governance and communication structure. Define the roles, responsibilities, and accountabilities of each partner, create a mechanism for resolving conflicts and disputes, and communicate regularly with your partner. Furthermore, align and integrate your network design and operations with your partner's as much as possible. Coordinate schedules, fares, products, and services to offer a seamless experience to customers. Share data, information, and best practices to improve network efficiency. Review and update your partnership periodically to adapt to changing market conditions and customer needs. Evaluate results and impacts of the partnership while being flexible to new opportunities or challenges. Be ready to exit or modify the partnership if necessary.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?