How Joining oneworld Will Benefit Oman Air

#OmanAir declared on June 20th that it would formally join the #Oneworld alliance in 2024. The declaration was issued at the #IATA's 78th Annual General Meeting, which was held in #Doha from June 19–21. But what advantages will Oman Air receive from its #membership?

Expanding the network

Have you ever questioned the initial need for international airline alliances? It is important to emphasise that every airline's network is the essential component of its product offering in order to respond to this question. It is true that people fly in order to get from point A to point B. An airline has a better chance of increasing traffic and, consequently, income the more destinations it offers.

However, it may not come as a surprise that no airline can travel to every location on Earth, which is the primary justification for airlines joining international alliances. For instance, Oman Air now offers service to 41 locations across 4 regions, none of which are in the Americas. However, American Airlines and Alaska Airlines, two US-based airlines, are oneworld members. As a result, starting in 2024, Oman Air will expand its network by providing convenient flight connections to the US, even if it does not fly directly there. Origin and Destination (O&G) traffic between the US and Oman brought in over $70 billion in revenue in 2019. Oneworld membership may enable Oman Air to more effectively take advantage of this profitable market.

Expanded codeshare agreements with the other alliance partners are principally responsible for the enhanced network coverage. Oneworld members Malaysia Airlines, Qatar Airways, Royal Jordanian, and SriLankan Airlines already code-share with Oman Air. However, the carrier will enhance the number of code-share agreements as a result of joining the alliance, significantly enhancing global connectivity throughout the alliance's network.

Boost sales and save expenditures

SkyTeam's analysis indicates that entering an alliance implies a potential income boost of up to 5% for the new member. But how is that even conceivable?

The above-mentioned improved network coverage has a direct impact on revenue growth, first and foremost. Traffic will in fact rise if an airline flies to additional places or depends on its alliance partners to do so. Additionally, alliance members increase traffic at the hubs of their partners, which increases the number of passengers. In December 2015, the first year the airline was a member of the SkyTeam international alliance, the number of connecting passengers at Garuda Indonesia's hub in Jakarta surged by 67% in comparison to December 2014. As a result, connecting passenger revenue also climbed by the same amount.

Through the combined purchasing of various air services, from ground handling to maintenance, joining a global alliance has a positive effect on a carrier's profit and loss statement from a cost perspective. Alliances can really negotiate better terms on air services contracts for some or all of their members than individual airlines could ever hope to

Enhanced client services

Flying with a carrier that is a part of a global alliance benefits airlines as well as passengers. The unification of frequent flyer programmes among the member airlines is the first benefit for travellers (FFPs). For instance, starting in 2024, passengers who fly with any oneworld member partner will be able to accrue and redeem miles. Elite frequent fliers will also have access to lounges while they are travelling with oneworld partners, in addition. On the other side, Oman Air lounges are available to oneworld Emerald, oneworld Sapphire, and premium cabin passengers in Muscat, Salalah, and Bangkok.

A solution to the pandemic

Airlines need reliable partners to carry out their recovery in the wake of the most severe crisis the airline sector has ever experienced. The demand is currently rebounding quicker than the airlines' capacity, despite the fact that many airlines are currently running with fewer fleets than they were before Covid. As a result, an airline aiming to escape the epidemic might likely benefit from being able to rely on codeshare agreements set forth in a solid and trustworthy alliance. Rob Gurney, CEO of oneworld, emphasised this issue as well.

The substantial rise of oneworld in recent years underscores how crucial alliances and collaborations will continue to be as the global tourism sector works to recover from the pandemic.