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It may be an unlikely sounding marriage but it would seem that the days of Low Cost Carriers (LCCs) being invited to cooperate with (but not join) the big global airline alliances are drawing ever nearer.
I wrote a blog post back in September on how Ryanair (the prince of Low Cost Carriers) was in talks with a number of long-haul airlines about providing connecting flights for their passengers (Is Hell Freezing Over?).
Back then, Michael O’Leary (Ryanair CEO) told Bloomberg News that he believed that, within the next 10 years, “the low-fare airlines will be doing most of the feed for the flag carriers”. He also confirmed that Ryanair was in talks with IAG (British Airway’s parent company), Virgin Atlantic, Norwegian and TAP about providing short-haul feed traffic.
Star Alliance Takes The First Steps
Now Star Alliance has announced the launch of its “Connecting Partner” program which allows LCCs to connect into the Star Alliance network.
Mark Schwab (Star Alliance CEO) is quoted by ABT as saying:
We see a definite trend of convergence between the traditional full service and low-cost business models in the airline industry
At the same time, our customers are telling us that they need access to markets where we do not yet provide ideal coverage
Africa is one of the markets which we are focussed on growing
The first airline to join the Connecting Partner program will be Mango, a South African based LCC and it is expected to join some time during the third quarter of 2016.
Mango 737 – Image courtesy of Bob Adams via Flickr
Star Alliance has stated that, while members of their Connecting Partners program will be assessed to ensure that they comply and adhere to the alliance’s standards, they will not become alliance members.
Interestingly two of the world’s biggest LCCs, Ryanair and easyJet, don’t appear to be in the running for the Connecting Partner program – although some information emanating from Star Alliance is a little contradictory.
Mark Schwab is quoted as saying “We are not talking to Easyjet and Ryanair.”
While Lufthansa CEO Carsten Spohr said that, while discussions with easyJet about providing connecting traffic to Lufthansa are taking place, there is no sign of any imminent deal or announcement.
Presumably Ryanair is out of the running because of the talks with British Airways (a major OneWorld Alliance airline) that Michael O’Leary mentioned back in September so it will be interesting to see if those talks come to any kind of fruition.
How Cooperation Will Work & What It Means For Passengers
It doesn’t look as if all the details have been completely ironed out but this is what is being reported:
- Airlines invited to join the Connecting Partner program will enter into agreements with specific Star Alliance member airlines – so not all Star Alliance airlines will have the same Connecting Partners.
- Passengers connecting between Star Alliance airlines and Connecting Partner airlines will be able to check themselves and their baggage all the way through to their destination.
- Star Alliance Gold Elites will have some of their benefits recognized on Connecting Partners but no specifics have yet been announced. The benefits are most likely to be ones that are already something that the Connecting Partner offers for a fee – like seat selection.
- Star Alliance Elites will earn miles for travel on Connecting Partners when their itinerary involves a Star Alliance flight. The reports I’ve read aren’t uniform in what they say – some indicate that this will be limited to Star Alliance Gold members while others don’t address the issue of status at all.
Bottom Line
Not that long ago it would have seemed unfeasible to have a full-service airline linking up with a LCC (that wasn’t part of the same company) but now, not only does it seem to make sense, but it actually seems like it’s happening.
LCCs fly to numerous destinations untouched by their full-service counterparts so it makes sense to try to incorporate them into the global alliances to feed the long-haul routes.
LCCs know how to make money on short-haul/regional flights while most full-service airlines don’t have the set up to match them. And while the full-service carriers have been shrinking their regional networks most LCCs have been growing and growing – a partnership between the two is logical.
I’m looking forward to seeing which other LCCs Star Alliance brings into their fold and it will be interesting to see how OneWorld and SkyTeam respond. More interesting, however, will be seeing just how the culture of a full-service airline dovetails with that of a LCC. Can you imagine British Airways and Ryanair working together? What would that look like?!
