Blog 55: Analyzing the Star Alliance
Welcome back to Brooke In The Air! This week we’re altering our aviation path just slightly and focusing on the largest airline alliance that a lot of us prefer flying with. What is an alliance? I'm SO glad you asked.
The official logo and emblem of the globe spanning Star Alliance
This week, we are discussing the development and growth of the Star Alliance, as I mentioned. There are three major airline alliances spanning the globe. One World, Sky Team, and the Star Alliance. The Star Alliance is the largest alliance with 27 official members. Basically, in the simplest terms, an airline alliance is what it sounds like; a group of airlines coming together for, in this case, business advantages. You can book one Star Alliance flight with another airline’s miles as long as they are both Star Alliance members.
Founded on 14th of May 1997, its headquarters are located in Frankfurt-am-Main, Germany, on the grounds of Frankfurt Airport. The Alliance is led by Theo Panagiotoulias (of Greece) as CEO. As of April 2018, Star Alliance is the largest and oldest of the three global alliances by passenger count with 762.27 million, ahead of both SkyTeam of which Delta is a founding member (at 630 million) and Oneworld of which American Airlines is a founding member (at 528 million). Its slogan is "The Way the Earth Connects".
Star Alliance's 26, soon to be 27, member airlines operate a combined fleet of ~5,033 aircraft, serving more than 1,290 airports in 195 countries on more than 19,000 daily departures. The alliance has a two-tier rewards program, Silver and Gold, with incentives including priority boarding and upgrades.
Like other airline alliances, Star Alliance airlines share airport terminals and, within reasonable expectation, gates themselves (known as co-locations), and many member planes are painted in the alliance's specific livery.
A BRIEF HISTORY
The original founding picture and members of the Star Alliance - the five members make up the five-pointed star of the Alliance. Thai International Airlines, Scandinavian Airways (SAS), Lufthansa, Air Canada, and United Airlines - all users, at one point, used the Boeing 747 jumbo jet aircraft.
On May 14, 1997, an official business agreement was announced forming the Star Alliance with five airlines on three continents: United Airlines, Scandinavian Airlines, Thai Airways International, Air Canada, and Lufthansa.
BIRTH OF THE FUTURE
The nascent alliance chose Young & Rubicam for advertising, with a budget of $25 million USD (€18 million in 1997 Euros). The airlines shared the star logo from the beginning, with its five points representing the founding airlines. The alliance adopted its first slogan, "The Airline Network for Earth", with its goal being "an alliance that will take passengers to every major city on earth".
Joining the alliance were Ansett Australia and Air New Zealand, expanding Star Alliance to Australia and the Pacific. With the addition of the latter two carriers, the alliance served 720 destinations in 110 countries with a combined fleet of 1,650 aircraft.
The next airline to join was All Nippon Airways (ANA), the group's second Asian airline and second national carrier of Japan, on 15th of October in 1999.
During the 2000s, Emirates Airlines considered joining the Star Alliance, but decided against it remaining independent.
Also in 2000, the alliance also opened its first three business centers (in Los Angeles, Frankfurt, and Bangkok) and announced the formation of an Alliance Management Team (AMT), the partnership's executive body. In September 2001, Ansett Australia (the alliance's only Australian member) left Star Alliance due to bankruptcy, giving most of the Australian market to Qantas (a One World alliance member). That year, Star Alliance announced the appointment of a new CEO, Jaan Albrecht.
Asiana Airlines joined the alliance on 1st of March in 2003, the largely-absorbed and defunct Spanair on 1st of May, and LOT Polish Airlines (Poland's flag carrier) in October of 2003. Around this time, Mexicana Airlines left the alliance after deciding not to renew a codeshare agreement with United Airlines, later joining One World. US Airways joined the alliance in May of 2004, becoming its second US-based airline until US Air was bought out by American Airlines, absorbing their assets into the smaller One World alliance.
In April of 2006, Swiss International Air Lines, the alliance's sixth European airline, and South African Airways (its first African carrier of what would be three carriers, eventually) became the 17th and 18th members of the Star Alliance.
By May in 2007, Star Alliance's 10th anniversary, its members had a combined 16,000 daily departures to 855 destinations in 155 countries and served 406 million passengers annually. The alliance introduced Biosphere Connections, a partnership with UNESCO, the International Union for Conservation of Nature (IUCN), and the Ramsar Convention on Wetlands to promote environmental sustainability. This Connections initiative is strong to this day in 2023.
VARIG left the alliance on 31st of January in 2007 and subsequently went bankrupt then was, per Brazilian law, split into two companies - Flex Air, now bankrupt, and the current primary low-cost carrier of Brazil, Gol Airlines. Two Chinese carriers replaced VARIG. These two Chinese airlines, Air China, flag carrier of the People’s Republic of China, and Shanghai Airlines, joined on 12th of December.
On the 1st of April of 2008, Turkish Airlines joined the alliance after a 15-month integration process beginning in December 2006, becoming its 20th member. EgyptAir, Egypt's national airline and Star Alliance's second African carrier, joined on 11th of July, 2008.
INITIAL STAGE OF EXPANSION/GROWTH
On 27th of October in 2009, Continental Airlines became the 25th member of Star Alliance after leaving SkyTeam three days earlier. According to alliance CEO Jaan Albrecht, "Bringing Continental Airlines into Star Alliance has been a truly unique experience. This is the first time an airline has moved directly from one alliance to another, and I would like to thank all those involved in ensuring a smooth switch".
At the time, it was rumored that the switch was Continental's first move in a long-planned merger with United Airlines.
How true this circulated rumor was as the following year in 2010, Continental and United did in fact merge with United being the dominant partner and the United Airlines we know today.
Two months later, Brussels Airlines joined the alliance increasing the Star Alliance’s European reach further.
Brazilian carrier TAM Airlines joined Star Alliance on 13th of May, 2010, increasing its foothold in South America. Aegean Airlines, Greece's largest airline by number of passengers, and based in Athens, joined on 30 June.
Shanghai Airlines left the alliance on 31st of October in 2010 when it merged with China Eastern Airlines, a SkyTeam member and Shanghai’s assets were absorbed into China Eastern and subsequently joined SkyTeam as a subsidiary of China Eastern. In 2010 the alliance flew to 1,172 airports in 181 countries, with about 21,200 daily departures not including the addition of Ethiopian Airlines, the Star Alliance’s third African carrier.
Star Alliance saw a tumultuous 2012–13, starting with two key departures but ending with a major move into Latin America. In Europe, Spanair ceased operations due to bankruptcy, and BMI (British Midland International Limited) left after being acquired by International Airlines Group (IAG), the parent company of One World members Iberia and British Airways. BMI was integrated into British Airways.
In North America, as mentioned, Continental merged with United Airlines from 2010-2012, completing the merger in 2013, reducing Star's membership further, even if it effectively stayed in the alliance after the merger. On 21st of June, though, Avianca, TACA Airlines and Copa Airlines joined, massively increasing the alliance's Latin American presence. In November, soon-to-be defunct carrier Blue1 left after becoming an affiliate of parent Scandinavian Airlines and Shenzhen Airlines joined, augmenting Air China's Chinese network. Secondary Taiwanese carrier EVA Air then joined on 18 June 2013, and after TACA's integration into Avianca, the alliance grew to 28 members, making it the largest of the three major airline alliances. On 13 December, Air India was again invited to begin an integration process with Star Alliance and joined the alliance on 11th of July, 2014.
EXPANSIONS AND CONTRACTIONS
Following this string of expansions, 2014 opened with two major departures through mergers. First, Brazilian carrier TAM Airlines merged with LAN Airlines to become LATAM Airlines Group, leaving the alliance without a presence in the world's fifth-largest country. Next, US Airways completed its merger with American Airlines and also left the alliance. Both parent companies stayed with One World. On 24th of June, though, the alliance finally approved Air India, which joined on the same day on 11th of July, leaving the alliance at 27 members.
Asiana Airlines will merge with Korean Air, the Korean Government confirmed, in a $1.6 billion acquisition by the SkyTeam member, announcing plans to exit the Star Alliance.
In 2022, Lufthansa announced plans to buy a 40% stake in ITA Airways, a SkyTeam member. If this goes through, then they can become a member of Star Alliance.
As of 2023, Emirates is in a codeshare agreement with United Airlines and is considering joining the Star Alliance once again.
The numerous Codeshare flights of Star Alliance airlines are consistent. This cooperation led to suspicions of anti-competitive behaviour; the alliance was suspected by the European Union of being a virtual merger of its members, and speculation existed that if government regulations were relaxed the members would merge into one corporation.
Star Alliance developed a "regional" concept in 2004, which helped it penetrate markets with participation by smaller regional carriers. Regional Star Alliance members had to be sponsored by an alliance member. The alliance no longer designates airlines as "regional" members, now referring to its 27 airlines as full "members".
In 2007, alliance members flew 18,521 daily flights to 1,321 airports in 193 countries with a fleet of 4,025 aircraft. Its members carried a total of 627.52 million passengers, with revenue of US$156.8 billion (€145 billion) in 2007 dollars. It had 28 percent of the global market based on revenue passenger kilometers, greater than the combined market share of all airlines not in one of the three major alliances.
All alliance carriers combined employed over 405,000 pilots, flight attendants, and other staff.
MEMBERSHIP TIERS
Singapore Airlines’ A350-900 at SEA - Seattle-Tacoma International Airport in traditional livery.
Star Alliance has two premium levels (Silver and Gold), based on a customer's status in a member's frequent-flyer program. Member and regional airlines recognize Star Alliance Silver and Gold status, with a few exceptions mostly about airport lounge access. Membership is based on the frequent-flyer programs of the individual airlines. Many members have a premium status with their individual airline program that goes beyond Gold, such as United Airlines’ Global Services tier, which is notoriously invite-only, however these levels are all grouped together as Gold status when being recognized by Star Alliance overall.
Silver Status
Silver Status recognizes that customers having shown loyalty to Star Alliance member airlines and earns them two privileges that can make their journeys smoother. This includes priority reservations waitlist and priority airport stand-by.
Gold Status
Star Alliance Gold status is given to customers who have reached a higher level of a member airline's frequent-flyer program. Benefits are priority reservations waitlist, airport stand-by, check-in and baggage handling; an additional checked luggage allowance of 20 kg (or one extra piece, where the piece rule applies), and access to designated Star Alliance Gold lounges the day and place of departure with the presentation of a Star Alliance boarding pass. Some airlines also offer preferred seating (an exit seat or a special section of the plane); guaranteed seating on fully booked flights, subject to the booking class code and notice period, and free upgrades in the form of a voucher, certificate or automatic upgrade at check-in.
United restricts US lounge access for their Gold Members to long-haul international passengers; Gold members from other carriers are welcome in US lounges run by United on all itineraries.
INDIVIDUAL QUALIFYING TIERS OF STATUS - EACH AIRLINE HAS INDIVIDUAL MEMBERSHIP PROGRAMS AND STAR ALLIANCE EQUIVALENCIES.
Austrian Airlines
Brussels
Croatia
LOT Polish Airlines
Lufthansa
SWISS International Airlines
~~ Miles & More program ~~
Star Alliance Silver Equivalent = ~~ Frequent Traveler ~~
SA Gold = Senator, HON Circle
—————————————-
Aegean Airlines
~~ Miles+ Bonus ~~
SA Silver = Silver
SA Gold = Gold
——————————————
Air Canada
~~ Aeroplan ~~
SA Silver = 25k, 35k
SA Gold = 50k, 75k, Super Elite 100k
—————————————————-
Air China
Shenzhen Airlines
~~ PhoenixMiles~~
SA Silver = Silver
SA Gold = Gold, Platinum
———————————————————
Air India
~~ Flying Returns ~~
SA Silver = Silver Edge
SA Gold = Gold Edge, The Maharajah Club
————————————————————
Air New Zealand
~~ Airpoints ~~
SA Silver = Silver
SA Gold = Gold, Platinum
—————————————————————
All Nippon Airways (ANA)
~~ ANA Mileage Club ~~
SA Silver = Bronze
SA Gold = SuperFlyers Diamond, Platinum
—————————————————————
Asiana Airlines
~~ Asiana Club ~~
SA Silver = Gold
SA Gold = Diamond, Diamond Plus, Platinum
—————————————————————
Avianca Airlines
~~ LifeMiles ~~
SA Silver = Silver
SA Gold = Gold, Diamond, Cenit
——————————————————————
Copa Airlines
~~ ConnectMiles ~~
SA Silver = Silver
SA Gold = Gold, Platinum, Presidential Platinum
———————————————————————--
EgyptAir
~~ EgyptAir Plus ~~
SA Silver = Silver
SA Gold = Gold, Elite, Platinum,
————————————————————————
Ethiopian Airlines
~~ ShebaMiles ~~
SA Silver = Silver
SA Gold = Gold, Platinum
—————————————————————————
EVA Airlines
~~ Infinity MileageLands ~~
SA Silver = Infinity MileageLands Silver
SA Gold = Infinity MileageLands Gold, Infinity MileageLands Platinum
——————————————————————————
Scandinavian Airlines (SAS)
~~ EuroBonus ~~
SA Silver = Silver
SA Gold = Gold, Diamond, Pandion
———————————————————————————
Singapore Airlines
~~ KrisFlyer ~~
SA Silver = Elite Silver
SA Gold = Elite Gold, PPS Club, Solitaire PPS Club
———————————————————————————--
South African Airways
~~ Voyager ~~
SA Silver = Silver
SA Gold = Gold, Platinum
—————————————————————————————
TAP Air Portugal
~~ Miles&Go ~~
SA Silver = Silver
SA Gold = Gold
————————————————————————————-
Thai Airways International
~~ Royal Orchid Plus ~~
SA Silver = Silver
SA Gold = Gold, Platinum
—————————————————————————————
Turkish Airlines
~~ Miles & Smiles ~~
SA Silver = Classic Plus
SA Gold = Elite, Elite Plus
—————————————————————————————
United Airlines
~~ MileagePlus ~~
SA Silver = Premier Silver
SA Gold = Premier Gold, Premier Platinum, Premier 1K, Global Services (invite only)
HUBS
STAR ALLIANCE’S EAST ASIAN AND OCEANIC HUBS
STAR ALLIANCE’S EUROPEAN HUBS
STAR ALLIANCE’S NORTH (AND SOUTH) AMERICAN HUBS. ALL 9 UNITED AIRLINES HUBS PLUS AIR CANADA’S HUBS.
LIVERY USAGE
Air New Zealand’s unique Star Alliance livery in all-black with the Star Alliance logo on the tail-fin.
Star Alliance aircraft belonging to United bearing traditional alliance livery.
Some Star Alliance members paint some of their aircraft with the alliance livery, usually, a white fuselage with "Star Alliance" across it and a black tail fin with the alliance logo; the colour or design of the engine cowlings or winglets remains, depending on the member's livery. Singapore Airlines and Air New Zealand are two exceptions: Singapore Airlines formerly kept its logo on the tails of its aircraft, but now uses the Star Alliance logo on white tails, while Air New Zealand now uses full black livery with reversed colored original Star Alliance livery elements. Asiana Airlines was the first Star Alliance member to paint its aircraft in the current Star Alliance livery.
Aircraft painted in an airline's regular livery have the Star Alliance logo between the cockpit and the first set of cabin doors, except double deck airliners like retiring Boeing 747s and often-used megaplanes, the Airbus A380s, which printed the Star Alliance logo behind the cockpit, and airliners with narrow space between the cockpit and cabin door like the old McDonnell Douglas DC-9\MD-80 and new yet exclusively Chinese-built and Russian-operated (therefore sanctioned) Comac ARJ21, which printed the Star Alliance logo under the cockpit or on the fuselage’s first cabin door.
MEMBERS (CURRENT STANDING AS OF 2023)
The Star Alliance developed a "regional" concept back in 2004, which helped it penetrate markets with participation by smaller regional carriers. Regional Star Alliance members had to be sponsored by an alliance member; United sponsors United Express, and so on.. The alliance no longer designates airlines as "regional" members, now referring to its 27 airlines simply as "members."
Aegean Airlines - Greece
Air Canada - Canada
Air China - People’’s Republic of China
Air India - India
Air New Zealand - New Zealand
All Nippon Airways (ANA) - Japan
Asiana Airlines (leaving the Alliance) - South Korea
Austrian Airlines - Austria
Singapore Airlines’ A330 in initial all-white livery.
Avianca - Colombia
Brussels Airlines - Belgium
Copa Airways - Panama
Croatia Air - Croatia
EgyptAir - Egypt
Ethiopian Airlines - Ethiopia
EVA Air - Taiwan
LOT Polish Airlines - Poland
Lufthansa - Germany
Scandinavian Airlines (SAS) - Norway, Sweden, Denmark
Shenzhen Airlines - China (PRC)
Singapore Airlines - Singapore
South African Airways - South Africa
SWISS International Airlines - Switzerland
TAP Air Portugal - Portugal
Thai International Airways - Thailand
Turkish Airlines - Turkey
United Airlines - USA
Emirates may very well join later next year making up for the departure of Asiana with the latter’s merger with Korean Airlines.
