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Airberlin's new codeshare with Alitalia is no substitute for the loss of Etihad codeshare routes

Analysis

The new codeshare between airberlin and Alitalia, accompanied by a reciprocal frequent flyer agreement, reveals the guiding hand of Etihad Airways. It is another example of the growing cooperation among Etihad's equity investment airlines, whether current (airberlin) or prospective (Alitalia). This follows the launch of Etihad Airways Partners, which includes airberlin, but not yet Alitalia, although the latter it seems very likely to join after European Commission approval of Etihad's purchase of a 49% stake in it.

Both the new codeshare and Etihad Partners reflect a more liberal mood within the global alliances, allowing cooperation across alliances. Airberlin and Alitalia will remain members of oneworld and Skyteam respectively. The airberlin/Alitalia codeshare also comes just after an unexpected decision by Germany's federal aviation authority Luftfahrt Bundesamt (LBA) to reject airberlin/Etihad codeshares on 34 routes this winter. These are around half of the routes operated under airberlin's codeshare with Etihad and have received approval in the past.

The LBA appears to have reversed its decision, at least temporarily. If it stands for the longer term, the past week looks like a case of one step forward, two steps back for airberlin.

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