British Airways and American Airlines have announced the formation of their five-airline global alliance, prompting speculation that the move would force Europe's two remaining large unaligned carriers to form or join similar groups. Analysts said the deal would put pressure on Air France and S-Air, the Swiss group that owns Swissair, to seek partners as the trend towards airline alliances gathers speed. It also underlines the increased participation of smaller airlines in such link-ups and Aer Lingus is currently embarking on the search for an alliance partnership.
"This deal has opened up the prospect of another round of partnerships in the industry," said one analyst. "The concern is that if these airlines don't move soon, all the attractive partners will be snapped up."
Swissair said the deal would not alter its existing strategy. In Europe, the airline has a network of alliances with other regional carriers while on north Atlantic routes, it has a bilateral partnership with Delta Airlines of the US. Air France refused to comment.
Europe's other leading airlines already have partners. Lufthansa of Germany is a leading member of the Star alliance, seen as the new partnership's principal rival. KLM of the Netherlands is aligned with Northwest of the US.
Alongside BA and American, the new alliance called oneworld involves Canadian Airlines, Cathay Pacific of Hong Kong and Qantas of Australia.
Robert Ayling, chief executive of BA, said oneworld was a marketing alliance rather than a full partnership, and would not affect members' bilateral links with other airlines. There would be no regulatory implications, he said. For instance, both Cathay Pacific and Qantas have bilateral relationships with Swissair.
However, Mr Ayling held out the possibility that the relationship could deepen once BA's planned alliance with American receives regulatory approval.
The five members, plus franchise and partner airlines, will serve 632 destinations in 138 countries. They carried 174 million passengers last year and collectively have over 215,000 employees.
"Our customers have told us they want airlines to work together to raise standards across the world and oneworld will do just that," said Mr Ayling.
The partners expect to phase in the customer benefits accruing from oneworld from next February. These will principally include a seamless frequent flyer programme.
The alliance's marketing budget, worth "tens of millions of dollars", will be two thirds financed by BA and American with the remainder coming from the other partners.
Other airlines are expected to join the alliance. Finnair is discussing joining oneworld as soon as possible. Iberia of Spain and Japanese Airlines are also talking to oneworld.
