If you’re wondering whether there’s any added value offered to passengers from alliances in the age of diminishing returns on loyalty programs, you’re not alone.
Airlines have been scratching their heads about the value of alliances too.
At the CAPA World Aviation Summit in Helsinki this week, various panels reviewed the competitive changes taking place in a slow process of globalization in the last global industry which is still, for the most part, strictly separated by borders.
Global airline alliances were originally set up as a way to work around the limitations of various nations’ access to air routes, to support the connections of increasing numbers of the global travellers created by open trade in other industries, and to provide buffers in harsh economic climates. On the customer side, alliances have touted universal standards of service, frequent flyer program benefits, access to lounges for member flyers, and convenient connections.
This article is a fragment originally published on Skift and can be read in full here.