Oneworld Alliance Moves into South America
Monday, February 9th, 2009
South American powerhouse airline LAN will begin domestic service in Ecuador, giving the powerful Oneworld Alliance a strong position in South America. This might seem like a small step for the world’s biggest airline alliance, but it shows just how much they have solidified their position as the top group in the world.
Member airlines include some of the largest and best known carriers in the world: American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, LAN, Qantas and Royal Jordanian. There are more than 20 other airlines who also claim membership. Oneworld serves nearly 700 international destinations in 150 countries. In addition, they offer club membership which gives members access to airport clubs and lounges in more than 500 airports.
None of the other major alliances have networks in South America or Australia. LAN’s development means that it will be hard for Star Alliance and its peers to get a foothold on the continent. In addition, the alliance is the only truly global network in the world.
Qantas will further Oneworld’s cause in South America. They have recently reached a deal with LAN Argentina to provide flights to Buenos Aires from Sydney. LAN will provide connecting flights to other South American destinations. This will open up South America to Australian fliers for the first time.
In the Northern Hemisphere, members American Airlines and British Airways are moving into dominant positions in trans-Atlantic routes. New routes between the US and Spain (Madrid and Barcelona) are being set up by American.
Is such dominance a positive or negative as far as travelers are concerned? There is always a concern about lack of competition leading to higher prices. That is true. But the other major airline alliances, like Star Alliance, are far from dead. Expect plenty of competition along popular routes. Also, alliances mean that connecting flights are often cheaper and always more convenient.