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SkyTeam plans new partnership platform to attract hybrids and LCCs, especially in Brazil and India

Analysis

In the past year, the global marketing alliances - oneworld, SkyTeam and Star - have found themselves facing two large dilemmas. First, almost all of the world's major airlines have become aligned to a global alliance, making it difficult to increase value. The standouts are largely low-cost carriers and Middle East network carriers. Second, internal segmentation has occurred as member carriers, under pressure to be smarter and more strategic, form tight relationships outside of alliance lines. That inverts the loyalty proposition: where carriers once associated themselves with a marketing alliance, now the primary association is often to key members, with the alliance alignment secondary.

SkyTeam's solution is consideration of a hybrid partnership platform. Details are being worked through but the framework would target the low-cost and hybrid carriers that largely comprise the unaligned standout carriers.

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