One solution is to create a virtual joint venture . This means that both parties bring in the costs of their aircraft , personnel and support operations , which are split along with the revenues . The assets themselves remain with the partner companies .
KLM – Northwest was the first transatlantic alliance , followed by Lufthansa partnering with United and then British Airways with American Airlines . These kinds of alliances are closely monitored by the competition authorities . It is not permitted to have more than 80 to 90 % of the business between two cities ; there should always be reasonable alternatives . Most alliances are therefore created for long-haul routes . It helps if it is clear that the customer benefits as well , for example from a better choice of flights spread throughout the day .
These joint ventures may incorporate incentives to sell connecting flights for the partner . These are always combined with the revenue management systems of both airlines to ensure a suitable mix between early bookings against a lower price and high-priced last-minute bookings .
In the case of the KLM – Northwest alliance , both partners have closed down their own sales offices in the other party ' s home market . The joint venture has its own revenue management system .
Henk de Graauw : “ It is important to have a 50 % -50 % joint venture . This makes it easier to settle costs and revenues , and it is more motivating for the personnel . Such alliances are generally for the long term , and a great deal of investment goes into making processes work . The structure should be reflected in the governance of the partnership : it ' s not a good situation if one party has more influence than the other .”
De Graauw does not believe the new airlines in the Middle East will join one of the three alliances soon . “ First of all their benefit is not that clear : they hardly have a home market , in contrast to the airlines that founded the three big alliances . Their set of destinations is more competitive than complementary with those of the three big alliances . And second , these state-owned airlines have a different business model and investment pace .”
In 2009 Skyteam changed its organisational structure , making the decision-making process more centralised . Up until then there were a lot of working committees with rotating chairmen . When Leo van Wijk left KLM he was asked to remain chairman of Skyteam , and an office near Amsterdam Schiphol Airport was created with a managing director and four vice-presidents , to safeguard the continuity of the working committees . The managing director reports to the Skyteam Supervisory Board , with all the vice-presidents for alliances of the airlines .
Star Alliance has had such a centralised structure for a longer time . There is an office in Frankfurt with more than 120 staff members and an ex-SAS CEO as chairman . OneWorld recently established a support office in Vancouver .
What does Henk de Graauw anticipate for the future ? “ The structure with the three large alliances will remain . There might be potential for a fourth alliance in Asia , but I think the changes in membership will be driven by mergers and bankruptcies . I predict those mergers to first take place on a national scale , and then within an alliance . Airlines within an alliance are already better aligned at an operational level .” 88