Band of brothers

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Creature comforts: British Airways’ passengers have access to all global oneworld lounges.

For Michael Blunt, joining an airline alliance is like getting married - without trust, respect and mutual attraction, the relationship will never last.

As spokesman for carrier coalition oneworld, Blunt is often caught making the analogy when promoting the benefits of established airline networks. But rather than apologise for repeating himself, Blunt is keen to emphasise the point.

"Like a marriage, both parties have to come on board and be interested in each other," he says. Judging by recent figures, it's likely the 10 oneworld members share Blunt's enthusiasm.

In 2006, the group - which was founded eight years ago by British Airways, Cathay Pacific, American Airlines and Qantas - collectively generated nearly US$2 billion revenue. In Blunt's words, it's a "sizeable sum" that couldn't be achieved individually.

While few would disagree, there is equally little doubt that airline alliances are big business. Carriers fortunate enough to secure membership can access routes, destinations and airport passenger lounges that would otherwise be unavailable. Indeed, British Airways has expanded its coverage since co-founding the alliance to 9000 daily flights across some 150 countries.

"As part of the oneworld alliance, BA can offer customer benefits that are beyond the reach of any individual airline's network," a British Airways spokesperson said. "Importantly, via oneworld, British Airways also generates substantial direct revenue from our partnerships with alliance members." Like British Airways, Middle East carrier Royal Jordanian Airlines has expanded its flight network since joining oneworld. Samer Majali, Royal Jordanian Airlines' president and CEO, says linking up with another alliance member has boosted his carrier's US operation.

Before joining oneworld, the airline provided non-stop flights from Oman to three American destinations. But since securing membership in April, Royal Jordanian has extended its service to other cities. Passengers travelling to the US from the Middle East can now fly to more states via Royal Jordanian's partner carrier American Airlines.

According to Majari, the relationship is a win-win situation for both companies. "We can provide a service to destinations in the US that competes with the European carriers offering the same facility," he says. "There's a lot more feed, with more passengers from our partner airlines coming to the Middle East through Royal Jordanian. That's the whole point of the relationship." Aside from the financial benefits, joining oneworld has also further raised Royal Jordanian's profile, according to Majari.

Indeed, his company is the only Middle East carrier linked with one of the three global airline alliances. "It's not because they [the region's airlines] aren't good carriers - they are all fairly good," he says. "It's to do with the carrier's objectives - is it a commercial entity or state enterprise, what's the strategy and do they add value to the alliance or not?" Unsurprisingly, Majari believes the relationship with oneworld gives his airline a distinct advantage over other operators in the region.

"Once you join a global alliance there is an implied level of operational excellence, safety and service that puts you on a compatible basis with the other airline members," he says. "There is also a marketing advantage. We get more loyal customers because they receive points [air miles] not only on RJ flights but also oneworld partner flights."

The financial rewards suggest that most unattached airlines are keen to get involved. But joining oneworld is no easy feat. To gain membership, carriers need to show they can increase the alliance's coverage in a particular region. While British Airways and Cathay Pacific were already operating in the Middle East, oneworld's management believed a local airline was needed to further establish its presence.

In 2005, the alliance's directors spent months scrutinising eight Middle East carriers with "high standing reputations for customer service" and solid brands. They also wanted a financially-stable airline that provided additional routes across the region. Royal Jordanian was eventually enlisted earlier this year, having ticked all the boxes.

"If you look at Royal Jordanian, it operates to more destinations in the region than any other airline," Blunt says. "It's focused on being a leading carrier within the region, so in that respect it does add considerable value to oneworld because we already offer good networks between Europe and Asia."

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