OpenSkies, a British Airways subsidiary, stated (22-Nov-2012) it is to become an affiliate member of oneworld from 01-Dec-2012. The carrier, which offers premium airline services between continental Europe and the US, said as a oneworld affiliate member, it will offer the alliance's full range of services and benefits, including FFP membership, fare promotions and lounge access. OpenSkies MD Patrick Malval said: "With OpenSkies being brought closer to mainstream British Airways, we are delighted now to be able to offer our customers the full range of oneworld services and benefits and to bring our flights into the network of the world's leading quality airline alliance." Besides its 11 full member airlines, oneworld also includes some 30 affiliate members. British Airways has three established oneworld affiliate members – BA CityFlyer, SUN-AIR and Comair. [more - original PR]
OpenSkies to join oneworld as affiliate member from 01-Dec-2012
You may also be interested in the following articles...
Chinese long haul secondary city air routes: BA's Chengdu exit does not reflect the broader market
The fastest long haul airline growth is not occurring with Gulf airlines but rather, with services to and from secondary Chinese cities. It is not a secret that local incentives and subsidies, generally common in any market, are especially large in price and duration for secondary Chinese cities. An airline might expect over a third of revenues to be subsidised. This drastically alters the business case in a low-margin industry, hence the proliferation of secondary city services. This extreme dependence on subsidies raises the question of how long governments are willing to issue generous subsidies, and how many routes can be sustainable without them.
British Airways' decision to exit its only secondary Chinese route to Chengdu, in Jan-2017, might suggest the music is ending and the secondary long haul bubble is popping. There is added colour given the recent UK-China air service agreement expansion, and Brexit/British pound depreciation overhangs.
BA's exit does confirm market fundamentals: secondary city yields are low, and some routes are ahead of their time. Yet a number of factors unique to British Airways suggest caution in concluding that BA's Chengdu exit could foreshadow other withdrawals.
oneworld, in a complex solar system
oneworld is the smallest in size of the three global alliances but advertises itself as highest quality in terms of members and awards received. oneworld has strength in financial centres, is the alliance for the world’s largest airline (American) and with LATAM is a powerhouse in Latin America. It is also the loosest of the three major alliances, often described as more of a linked collection of bilateral partnerships.