alliance
noun
1. a union or association formed for mutual benefit, especially between countries or organizations.
You’ve seen the movie, you know the story, but this time the players are just a bit different. The OneWorld alliance is one of the three most powerful airline groups in the world, with many of the most venerable airlines on each continent. So, what on earth could possibly go wrong? You’ve got American in the United States, British Airways, Finnair and Iberia in Europe, Cathay Pacific, Japan Airlines and Malaysian in Asia, Qantas in Australia, Qatar in the Gulf and LATAM in South America. At the moment, the OneWorld Alliance seems more like an episode of Netflix thriller “Narcos” than an alliance…
It All Started…
This all started with OneWorld alliance founder American Airlines. Circa 2015, the airline joined forces with compatriots United and Delta to launch the Partnership For Open & Fair Skies. If that sounds like a load of rubbish, it is. The program was designed to limit foreign airlines ability to operate new routes in the United States, and as many see it, to keep U.S. travelers from seeing how far behind the curve their airlines had become. The move was specifically directed toward Gulf airlines, which meant it was targeting American’s OneWorld partner, Qatar. First shot, fired.
And Then There Was…
Ah, the blockade. With favorable global political tailwind in their favor, Saudi Arabia sought to control influence in the Middle East in 2017 with a blockade against their Gulf opposition. The blockade was in partnership with Qatar’s neighbors in the United Arab Emirates. That specifically meant cutting off Qatar in the most malicious terms. No airspace rights over the UAE or Saudi Arabia for Qatari planes, no goods or services from either area and no flights either. Operating principle: cripple Qatar Airways.
Setting The Stage…
To recap, American fired the first shot, by protesting its own alliance member Qatar Airways. Then, some non OneWorld airlines and countries banded together to try and obscure Qatar. Now, if someone tried to effectively end you, how would you feel if your alliance partner then partnered with them? Enter: Qantas. At the same time Emirates and other Gulf neighbors were taking their very best shot at Qatar, Qantas strengthened partnerships with Emirates. The move intended to control the flow of passengers between the Middle East and Australia, and muscle Qatar out. Not very neighborly, indeed.
All Kicking Off…
As Qatar Airways became more profitable, their outlandish CEO became more outspoken. Akbar Al Baker famously stirred up alliance relations recently proclaiming that the airline may leave the OneWorld alliance, citing exactly the arguments made above. IAG boss Willie Walsh then noted it was actually a distinct possibility, and not just posturing. If an alliance is an association for mutual benefit, as it’s formally defined, Qatar wasn’t feeling it. Then Qantas CEO Alan Joyce effectively told Qatar to “do one”, by saying if they want to leave, they should just leave. If that scenario were to play out, British Airways and Qatar would almost assuredly continue with their joint partnership. You’d think it ends there, but it’s still ramping up…
Enter Cathay Pacific…
The beloved Hong Kong airline managed to avoid the fray for so long, but all good things come to an end. Qantas pursuit of direct point to point flights between the US, Europe and Australia are an existential threat to Cathay Pacific, and both airlines know it. Qantas CEO Alan Joyce told the South China Morning Post “We’re going to compete vigorously. I think we’re frenemies with Cathay, there’s a bit of that”. Cathay Pacific is experiencing growing pains as the airline looks to cut cost, with its second consecutive annual loss. Direct point to point travel from Qantas would cut out Cathay Pacific’s “one stop” shop, a move which could worsen Cathay’s fate.
But There’s New Life…
Morocco’s Royal Air Maroc is tipped to be announced as the newest OneWorld alliance member on December 5th, 2018. The airline has invested heavily in a fleet of new Boeing 787 Dreamliner’s and has increased U.S routes. Alaska Airlines is also expected to join as a “connect” member, which is a lighter form of membership. Will Qatar leave? Will Cathay threaten the same? For now, two new airlines are in the mix and this drama of the titans will continue…
The CEO of Qantas is such a ****
But the CEO of Qantas is still more likeable and competent than the CEO who has turned BAs service to BeyondAbysmal and made them an airline that’s BestAvoided