Alliances at the top: partners of convenience or strategy?

Season 1, Episode 6 | July 16, 2025

Moderator: Arturo | Experts: Nicolás (global), Fabricio (América Latina)

Here is the executive English translation of your podcast transcript on airline alliances, maintaining clarity, fluency, and a professional tone:

Executive Summary

This Altitud episode explores the evolution and strategic value of global airline alliances, from the formation of Star Alliance in 1997 to the rise of joint ventures like AeroméxicoDelta. Nicolás highlights how alliances offer global reach, cost efficiencies, and customer benefits without requiring mergers, while Fabricio examines Latin America’s early participation and current dynamics. With over half of international traffic flowing through alliance members, these partnerships remain vital—though the future points to deeper regional integrations, personalized tech-driven cooperation, and flexible models beyond traditional alliance structures.

Altitud Podcast – Episode: Airline Alliances

1. Introduction – 1 min

Arturo: Welcome to Altitud, the podcast where we analyze the skies from the inside. Today we’ll dive into something that affects every plane ticket you buy—even if you don’t realize it: airline alliances.

Who’s really behind your flight? Often, it’s more than one airline.

But are these alliances long-term strategies… or just marriages of convenience?

Joining me today are Nicolás, bringing a global perspective, and Fabricio, focusing on Latin America. Buckle up—we’re ready for takeoff.

2. Origins and Global Evolution – 5 min

Arturo: Nicolás, you were part of Aeroméxico’s global expansion. How did this whole alliance trend begin?

Nicolás: Before alliances took off, the landscape was pretty basic—just bilateral agreements and limited code sharing. But in 1997, everything changed. Star Alliance launched with Lufthansa, United, Air Canada, and others. It was the first branded alliance, offering shared benefits and integrated networks.

Today, Star has 26 member airlines, connects over 1,200 airports, and moves more than 680 million passengers annually.

Arturo: Then came oneworld, right?

Nicolás: Exactly. In 1999, American Airlines, British Airways, Qantas, and Cathay Pacific formed oneworld, with a more premium focus. Today it serves over 900 destinations.

SkyTeam was next—Aeroméxico was a founding member, along with Air France and Delta, in 2000. It now includes 19 airlines and carries over 675 million passengers.

Arturo: But these aren’t mergers, correct?

Nicolás: No, each airline remains independent. But they share sales platforms, frequent flyer programs, lounges, and—most importantly—market access. In fact, over 55% of international traffic is between alliance members. On key routes like Europe–Asia, that figure climbs to 70%.

3. Landing in Latin America – 8 min

Arturo: Fabricio, what about our region? How did alliances develop in Latin America?

Fabricio: Latin America was actually an early mover. In 2000, Mexicana joined Star Alliance, LAN Chile joined oneworld, and Aeroméxico helped found SkyTeam. At that point, four of the region’s five biggest airlines were in an alliance.

Arturo: I remember “Alas de América”… an interesting attempt. In the 1990s, under Grupo Cintra, Aeroméxico, Mexicana, and Aeroperú tried to consolidate traffic rights.

Aeroméxico flew Lima–São Paulo, Mexicana did Lima–Buenos Aires, all using Aeroperú’s rights. But a crash involving a B757 ended the project.

There was also something between TACA, TAM, and LAN, right?

Fabricio: Yes! In 1998, they didn’t align routes—but they placed a joint order for 90 Airbus A320s. That was groundbreaking: negotiating as a block gave them better terms than going solo

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Arturo: And the most talked-about case today is Aeroméxico and Delta…

Fabricio: They’ve been working together since 1994, but in 2015 they signed a joint venture (JCA) with antitrust immunity. They share routes, decisions, staff—even lounges. It’s the most integrated alliance in the region.

LATAM and Delta are building something similar, while Avianca and United—though both in Star Alliance—haven’t reached that level yet.

Arturo: And COPA? JetSmart?

Fabricio: COPA is part of Star Alliance and connects much of the Americas through Panama. JetSmart, although low-cost, has a bilateral partnership with American Airlines (oneworld). In Latin America, oneworld is the weakest, so its members rely more on individual agreements.

4. What Are Alliances For? – 4 min

Arturo: Now that we know the history—what’s the real value of these alliances?

Nicolás: First, global reach without flying more planes. Copa flies to 80 destinations, but through Star Alliance, it can sell tickets to over 1,000.

Arturo: Like flying further without flying farther.

Nicolás: Exactly. Alliances also bring cost savings—shared maintenance, joint procurement, VIP lounges. According to IATA, they can cut fixed costs by up to 10%.

For passengers, there are benefits like earning miles, through check-in, connected baggage, and customer support when things go wrong.

And they also build brand strength. In 2022, over 60% of frequent flyers said alliance membership influences their airline choice.

5. What’s Next? – 6 min

Arturo: Now that alliances are well established, what’s next?

Fabricio: The focus now is on technology and personalization. Alliances have evolvedfrom just full-service carriers to including low-cost airlines, and from basic cooperation to sharing internal processes.

I don’t think we’ll see many new members. Big independents like Emirates prefer bilateral deals, and smaller carriers often don’t have the scale or the need.

Nicolás: We’ll likely see more regional integration. Look at the new “Blue Sky” agreement between United and JetBlue.

Fabricio: And the Abra Group—Avianca, GOL, and Sky—is developing new forms of collaboration. These aren’t traditional alliances, but they’re all about joining forces. That’s where the future is headed.

6. Closing – 1 min

Arturo: Alliances have changed the way we fly—and they keep evolving. They’re more than agreements; they reflect economics, geopolitics, and the human desire to fly farther.

Thanks Nicolás, thanks Fabricio. And thank you for joining us on Altitud. If you enjoyed this episode, share it, leave us a comment—and get ready, because in two weeks, we’ll keep exploring the skies with our industry-driven insights into commercial aviation in Latin America.

Talk to you soon!