Mergers in the Airline Industry

By Barry Wenger

 

Since the deregulation of the airline industry in 1979, many new airlines have opened for business.  Often, these new airlines are either owned by or have alliances with one of the larger airlines.  The new, smaller airline; however, is kept as a separate entity in order to create an illusion of competition for the consumer.  There are actually only four large "airlines," but these airlines include many alliances with other airlines.

 

The most common airlines:

 

Aeromexico

Air Canada

Alaska

Aloha

America West

American

ATA (American Trans Air)

Atlas Air

Continental

Delta

Hawaiian

Midwest Express

Northwest

TWA (Trans World Airlines)

United Airlines

US Air

 

 

The main alliances:

 

The Star Alliance[1]:

Main airline: United

Air Canada

Air New Zealand

ANA

Ansett Australia

Australian Airlines

British Midland

Lauda Air

Lufthansa

Mexicana

Scandinavian Airlines

Singapore Airlines

Thai

Tyrolean

Varig

 

 

One World[2]:

 

Main Airline: American Airlines and American Eagle

Aer Lingus

America West

Cathay Pacific

Cross Air

Deutshce Ba

Emirates

Finn Air

Iberia

Lan Chile

Malev Hungarian Airlines

Lot Polish Airlines: Service between US and Warsaw, Poland.

Qantus: Service between the US and Australia-New Zealand

 

Though not included in the One World Alliance, American also has alliances with the following airlines:

 

Air Pacific: Service between Los Angeles and Nadi, Fiji

Asiana Airlines: Service between US and Korea

China Eastern Airlines: Service between US and Shanghai and Beijing, China via Los Angeles and San Francisco.

Eva Air: Service between US and Taiwan

GRUPO TACA: Service between US and Central America

Gulf Air: Service from London/Heathrow to business centers in the Middle East

Hawaiian Airlines: Service between the Hawaiian Islands and to the Continental US

Japan Airlines (JAL): Service between US and Japan

Sabena: Service between the US and Brussels, Belgium

Swissair: Service between the United States and Zurich, Switzerland

TAM Airlines: Service between São Paulo and Miami and beyond São Paulo to Brasilia, Curitiba, Florianoplis, Fortaleza, Porto Alegre, Recife and Rio de Janeiro.

TAP Air Portugal: Service between the US and Lisbon, Portugal

Turkish Airlines: Service between the US and Istanbul, Turkey.

 

 

Continental's Alliance:[3]

 

Air France: Air France is one of the primary airlines in Europe with a global route system that reaches every populated continent from its home at Paris Charles de Gaulle. It operates Boeing 747, 767-300, 777, 737, and Airbus A-340 and A-320 aircraft on codeshare flights. Continental and Air France have teamed up to offer 3 daily flights between New York/ Newark and Paris, and 2 daily flights between Houston and Paris. From Paris, customers can make convenient connections to Air France destinations throughout the world.[4]

 

Alaska Airlines: Alaska Airlines is the nation's tenth largest carrier, operating hubs in Anchorage, Seattle, Portland, and Los Angeles. Together with its sister carrier, Horizon Air, the airlines serve more than 70 cities in six Western states, Mexico and Canada. Alaska Airlines operates a fleet of MD-80s and Boeing 737 series aircraft, while Horizon Air flies Fokker F-28 jets and de Havilland Dash-8 turbo props.[5]

 

Alitalia: Alitalia is the flag carrier for Italy and serves 66 countries and flies more than 25 million customers annually. It operates major connecting centers at Rome Fiumicino Airport and Milan Malpensa. Continental offers daily service between New York/ Newark and both Rome and Milan. From each of these destinations, customers can conveniently connect to anywhere on Alitalia's route network.[6]

 

America West Airlines: The America West/Continental alliance is one of the largest domestic alliances in the industry. Since 1994, the two carriers have offered expanded access and frequency throughout America West's hubs in Phoenix, Las Vegas, and Columbus. America West also gives customers access to smaller cities such as Burbank and Long Beach, CA. America West holds the unique distinction of being the only post-deregulation U.S. domestic airline to successfully grow to major airline status and continue to successfully operate today. America West operates a fleet of Boeing 737 and 757 aircraft as well as the Airbus A-320/A-319.[7]

 

Copa Airlines: Copa flies to 31 destinations in 20 countries in North, Central, and South America, as well as the Caribbean from its base at Tocumen International Airport in Panama City.  Continental has acquired a 49% minority ownership in the parent holding company of Copa.  Copa operates a fleet of Boeing 737 series aircraft, and is the first Central American airline to operate the next generation 737-700. Copa offers Continental customers codeshare services between Panama City, Panama and Miami, Orlando, San Juan, Guatemala City, Lima and Santo Domingo and Los Angeles. Continental provides codeshare services for Copa customers from Panama City to Houston and New York / Newark, with connections to cities throughout the U.S.[8]

 

                  Emirates: Emirates is the international airline of the United Arab Emirates. In April 1998, Emirates acquired a stake in Air Lanka. Emirates operates services to 48 destinations in 37 countries in the Middle East, Europe, Africa, West Asia, the Indian Subcontinent, the Pacific Rim, and Australia. In addition, Emirates serves numerous cargo destinations around the world.[9]

 

 Eva Air: Service between US and Taiwan

 

 Hawaiian Airlines: Hawaiian Airlines serves 14 domestic and international destinations in the Pacific region. They operate more than 175 daily jet flights among the islands of Hawaii.  Throughout 2001, Hawaiian will begin to introduce the new Boeing 717 aircraft into its fleet, sporting a new fuselage livery.[10]

 

 Horizon Air: see Alaska Air description.

 

   Northwest Airlines: (Note: when I requested permission to use Northwest's logo on this page, I received the following response, "Unfortunately, due to legal restrictions, we cannot authorize use of our logo on other web sites." Perhaps they should re-evaluate their public relations policy because I see no harm in a student using a logo on a school web page.  Regardless, I have removed the logo.) Northwest Airlines is the world's 4th largest airline and flies over 55 million passenger annually. With hubs in Minneapolis/St. Paul, Detroit, Memphis, and Tokyo, Northwest offers over 2,600 daily flights to nearly 250 destinations worldwide. Continental and Northwest have formed an extensive alliance relationship which includes codesharing on most domestic and select international routes. In the U.S., Northwest and Northwest Airlink (operated by Mesaba Airlines and Express Airlines) offer customers expanded access to small cities throughout the Midwest, West, and Deep South. Internationally, from Northwest's hub in Tokyo-Narita, customers can make connections to cities such as Bangkok, Thailand, Singapore, and Seoul, Korea. Together, Continental and Northwest offer connecting service via most U.S. cities to provide increased scheduling options.[11]

 

Virgin Atlantic: Virgin Atlantic Airways is the second largest long-haul carrier of passengers and cargo in the U.K.

 

 

TWA's Alliance: (Note, TWA was recently acquired by American Airlines, so all of these airlines are now affiliated with American Airlines).[12]

 

 American Eagle: American Eagle Airlines is TWA's Trans World Connection carrier in the Northeast and on California's coast, providing connections to seventeen cities in the United States and Canada.  Eagle flights are operated with 37-passenger Embraer 135 Regional Jets and 34-passenger Saab 340 aircraft.  California service includes the following cities from Los Angeles: Bakersfield, Fresno, Santa Barbara, Monterey, San Luis Obispo, Palm Springs, and San Diego. Northeast routes from New York's JFK International Airport include: Albany, NY; Hartford, CT; Boston, MA; Buffalo, NY; Baltimore, MD: Cleveland, OH; Columbus, OH; Washington, DC; Worcester, MA; Pittsburgh, PA; Providence, RI; Raleigh/Durham, NC; Rochester, NY; Syracuse, NY; and Montreal, Canada.[13]

 

Chautauqua Airlines: Chautauqua Airlines provides Trans World Express service in St. Louis using 50-passenger Embraer 145 Regional Jets, and 30-passenger SAAB 340 turboprop aircraft.  Routes served by Chautauqua from St. Louis include: Waterloo, IA; Dayton, OH; Cincinnati, OH; Ft. Wayne, IN; Jackson, MS; Lexington, KY; Lincoln, NE; Rochester, MN (Effective 01/15/01); Shreveport, LA; Sioux City, SD; Toronto, Canada; and Knoxville, TN.[14]

 

 Corporate Airlines: Corporate Airlines offers nonstop service under the Trans World Express brand from St. Louis using 19-seat British Aerospace Jetstream 32 aircraft. Cities served from St. Louis include Marion and Quincy, Illinois; Cape Girardeau, Ft. Leonard Wood, and Kirksville, Missouri; Nashville, Tennessee, and Burlington, Iowa.[15]

 

Trans States Airlines: Trans States Airlines (TSA) is one of the largest regional airlines in the United States, and has been a Trans World Express regional partner since 1985. TSA provides Trans World Express service from St. Louis, utilizing both turboprop aircraft and Embraer 145 Regional Jets. Routes served by Trans States Airlines from St. Louis include: Bloomington, IL; Champaign, IL; Charleston, SC; Cedar Rapids, IA; Columbia, MO; Decatur, IL; Evansville, IN; Grand Rapids, MI; Greenville/Spartanburg, SC; Joplin, MO; Memphis, TN; Moline, IL; Madison, WI; Paducah, KY; Peoria, IL; South Bend, IN; Springfield, IL; Springfield, MO; and Fayetteville, AR.[16]

 

  TWA Connection: TWA also offers its passengers regional Trans World Connection service to leisure and business destinations, from points throughout the TWA network, including the Northeastern United States and Canada, California, Florida, Bahamas, and the Caribbean. TWA's Northeastern and California service is provided by American Eagle Airlines, Inc.; the Florida, Bahamas, and Caribbean service is provided by Gulfstream International Airlines. All Trans World Connection passengers are eligible to earn Aviators' miles and can redeem mileage for award travel on TWA's route system.[17]

 

 Trans World Express: Trans World Express, TWA's fully regional service, is offered between the TWA hub in St. Louis and cities and towns throughout the United States and Canada. Today, this service is provided by Trans States Airlines, Chautauqua Airlines, and Corporate Airlines with state of the art 50-passenger Embraer 145 regional jets and turbo prop aircraft.[18]

 

(Note: All logos displayed on this page are the exclusive copyrighted property of the corporations they represent.)

 

Besides the listed footnotes, information on the page was acquired and or verified using the various companies' annual reports.

 

Do you have more questions?  Please email me at GiantsPBPk@aol.com .  

 



[1] www.staralliance.com  8 May 2001.

[2] www.oneworld.com 8 May 2001.

[3] http://www.continental.com/corporate/  8 May 2001.

[4] http://www.continental.com/corporate/  8 May 2001.

[5] http://www.continental.com/corporate/  8 May 2001.

[6] http://www.continental.com/corporate/  8 May 2001.

[7] http://www.continental.com/corporate/  8 May 2001.

[8] http://www.continental.com/corporate/  8 May 2001.

[9] http://www.continental.com/corporate/  8 May 2001.

[10] http://www.continental.com/corporate/  8 May 2001.

[11] http://www.continental.com/corporate/  8 May 2001.

[12] http://www.twa.com/announce/acquisition.html 14 May 2001.

[13] http://www.twa.com/about/alliance_partners.html 8 May 2001.

[14] http://www.twa.com/about/alliance_partners.html 8 May 2001.

[15] http://www.twa.com/about/alliance_partners.html 8 May 2001.

[16] http://www.twa.com/about/alliance_partners.html 8 May 2001.

[17] http://www.twa.com/about/alliance_partners.html 8 May 2001.

[18] http://www.twa.com/about/alliance_partners.html 8 May 2001.