Back to the fore?

At Heathrow, Terminal 2 will be significantly Star Alliance-branded.

All 22 alliance airlines serving LHR will move from their current homes in Terminals 1, 3 and 4 in a staggered program, set to be complete by November. Just three non-Star Alliance airlines – Aer Lingus, Lufthansa’s Germanwings and Virgin Atlantic’s Little Red UK domestic flights – will also be based in T2.

Unusually, Star Alliance’s new hub will be operated without an anchor airline calling it home. In a situation underlining the problems of planning airport and terminal capacity in the fast-moving airline world, bmi was to have been the linchpin of Star’s new Heathrow home, but the alliance itself stepped up after British Airways snapped up its smaller competitor.

And it’s unapologetically a hub. Star Alliance expects Heathrow to serve as a longhaul-to-longhaul and minor-Europe-to-US hub, in contrast with SkyTeam’s Terminal 4, which is principally a UK destination colocated terminal.

Given the number of European airlines serving London and the significant presence of United Airlines, cross-border partner Air Canada, and Air New Zealand’s flights to LAX, it’s a realistic expectation.

With a minimum connection time of 60 minutes – compared with the 90 minutes to transit between oneworld’s Terminals 3 and 5 – the case might well be compelling for many flyers.

The alliance resurgence

Star Alliance is the largest, with 28 members. SkyTeam takes the middle with 20 airlines, while oneworld counts 14 carriers among its members. Each alliance has an affiliate level for related airlines (for example, British Airways’ OpenSkies subsidiary, Cathay Pacific’s Dragonair, or Finnair’s Flybe Nordic – though the latter only counts when operating on behalf of Finnair).

Of course, alliance membership is not mandatory, as Virgin Australia clearly demonstrates with its bilateral partnerships across and outside alliances, and Qantas equally demonstrates with its strategic partnership with Emirates. It’s possible (though more difficult) for airlines to provide passenger benefits and reap rewards without joining one of the big three alliances.

Indeed, Emirates’ argument is that it is large enough to engage in bilateral agreements instead of an alliance, while Etihad has created its own alliance of carriers through a mix of bilaterals and investment.

Alliances mainly undertake passenger-focused initiatives at airports for two reasons and in two situations: to assist passengers in recognising passenger services offered by a member airline at that member airline’s hub, and to organise similar passenger services at airports that have no hub airline to anchor them.

In general, there are seven points at which alliances differentiate their offerings or provide services: membership tiering, booking, checkin, transfers, baggage, lounges, and at the boarding gate.

Membership tiering

Each alliance tiers its member airlines’ frequent flyers into two or three categories, which determine what benefits a frequent flyer will receive.

Oneworld’s three tiers contrast with two tiers at SkyTeam and Star Alliance, enabling top-tier oneworld Emerald members to be treated essentially as first class passengers, mid-tier Sapphire cardholders to see business classlevel services, and low-tier Ruby passengers to receive a slightly elevated experience, often (but not always) akin to a mixture of business and premium economy.

(Qantas Frequent Flyers will know that oneworld Ruby, Sapphire and Emerald correspond to Silver, Gold and Platinum, respectively. ) Star Alliance, meanwhile, offers the mostly meaningless Silver category (benefits: priority waitlist and standby) in addition to its principal Gold offering.

SkyTeam’s Elite members get a little more than Star Silver: extra baggage allowance, plus priority check-in, boarding, waitlist and standby. Elite Plus members get the meat, receiving Elite benefits plus additional extra baggage allowance and lounge access.

All three alliances also advertise the usual guaranteed economy seat and priority waitlisting or standby for top-tier cardholders, though these aren’t huge draws for most frequent flyers. So: oneworld stands out clearly with its top-tier Emerald treatment, which is especially attractive for Australians flying through Sydney and Melbourne given the world-class Qantas First lounges in those cities.

Booking

Whether a particular passenger factors in an alliance to their booking decision depends on several factors. High-value frequent flyers are clearly more likely to wish to add to their points balance, boost their status or requalify, and take advantage of the benefits of their existing status.

Alliances make all three factors easier for frequent flyers to track, although there are differences across the three main alliances and even within them.

For example: a United MileagePlus member flying in economy on Air Canada could earn miles at a rate of either 25 per cent or 100 per cent of miles flown, depending both on booking class (more expensive tickets earn more miles) and destination (flights outside North and Central America or the Caribbean earn more miles).

Confusingly and unusually, Air Canada’s premium economy earns at 100 per cent of miles flown, while full fare regular economy earns 125 per cent.

Similarly, SkyTeam member Delta has a four-group partner earning table, and SkyTeam members appear in all four tiers. Fly first class on Air France and you’ll receive 150 per cent of miles flown, plus a a 200 per cent status earn rate. Fly first class on Korean Air and you’ll earn at a 100 per cent rate, but absolutely zero status earn.

And, of course, Jetstar is the exception – some oneworld frequent flyers can earn on some Jetstar-operated flights, and Jetstar participates in the oneworld Global Explorer fares.

With this information rarely displayed at the point of sale even if booking directly with airlines, and practically never in distribution channels, there is a clear opportunity for alliances to provide a level of consistency that is currently severely lacking.

Airline loyalty programs are multi-billion-dollar industries, and there could well be benefit to creating floors (“you will earn at least X% when you fly business on a SkyTeam airline”), elite bands (“as a Star Alliance Gold member you will earn a status credit and mileage bonus of at least 50% on all fares”) or other standardised benefit levels.

Unfortunately for passengers, the trend is in the opposite direction.

After booking, some airlines give extra benefits to alliance frequent flyers. For example, British Airways waives seat selection fees for oneworld Sapphire frequent flyers (equivalent to BA Silver or Qantas Gold cardholders), enabling their partners’ best customers to pick the best seats onboard before check-in.

Check-in

The first point at which passengers come into contact with their airline’s alliance is check-in, and it’s here that the tone is set.

Finding the right area for check-in can be tricky. SkyTeam provides a high-visibility bright red SkyPriority brand for its member airlines to use to show passengers where to start off. Originally developed by member Delta Air Lines, SkyPriority is the most visible of the three airlines’ check-in branding, although it is interestingly not specifically alliance-branded and is open to Elite Plus frequent flyers and business or first class passengers.

SkyTeam has even taken over primary check-in branding at London Heathrow Terminal 4, home to the members serving LHR. With most member airlines operating only a small handful of flights, the efficiencies of having an all-day operation are clear.

Star Alliance takes a more muted approach to check-in branding with the silver-on-black Star logo and “Gold” in a thin light typeface.

Restrained, elegant – but, in a busy airport, perhaps not noticeable enough for infrequent travellers.

It will be interesting to see how Star Alliance branding works at the alliance’s new Heathrow Terminal 2, with three of four check-in zones dedicated to the alliance’s members.

Oneworld, meanwhile, segments its check-in benefits according to its three tiers, Ruby, Sapphire and Emerald. The red, blue and green ovals appear widely on check-in areas – relatively easily noticeable for savvy frequent flyers, but practically invisible to the uninitiated.

After check-in, priority security is a pot-luck situation. Oneworld advertises fast track security in around 50 terminals for top-tier Emerald members. SkyTeam’s SkyPriority services likewise are caveated with a “not available at all airports” line, while Star Alliance doesn’t advertise priority security as a Gold benefit.

Yet a counter-example of bilateral ties within an alliance, without alliance-specific branding, comes at Copenhagen.

Oneworld members Airberlin, British Airways and Finnair have colocated their check-in desks to reduce costs, open counters longer and reduce misdirected customers (usually the “your ticket is from airline X but your flight is operated by airline Y” situation).

Transfers

Transfers, too, are somewhat potluck, given that they may or may not require an additional security check and check-in-style point of contact at a transfer desk. Alliances’ effortshere are largely on the wayfinding and backend sides.

Wayfinding is helped by clear branding (such as SkyPriority, the oneworld frequent flyer gemstones or the Star Gold sub-brand). When this is successful, flyers transitioning from one airline’s set of offerings to another are able to queue in the right place and receive the recognition plus benefits to which their status or ticket entitles them.

When it’s not, flyers have to figure out whether they are entitled to push to the front of the queue with a muttered “business class, business class”. That’s a frustration both for status passengers (who feel awkward and unvalued) and for everyone else (who feel like second-class citizens).

Unfortunately, the clear branding is lacking. Aéroports de Paris’s “Accès n° 1” branding is pervasive but few airlines make it clear that, yes, this is the fast track and, yes, you are entitled to use it.

Alliances and their member airlines need to up their game significantly, even at hub terminals but particularly off-hub. With new short-range wireless technology like Apple’s iBeacon it shouldn’t be difficult to implement a system of notifications reminding each passenger which queue or transfer path to follow.

Even with current-generation paper systems, check-in desks or pre-airport printing of boarding passes mean that important transfer information could be provided early, with a printout similar to the current information on lounge access that is often printed out. (“As a valued Gold Diamond Plus member, you are welcome to use the Skyworld Fast Track facilities during transfer at San Angeles.

Simply follow the green lines marked Business Class or Fast Track. ”) On the backend side, alliances can achieve cost reductions through either alliance-branded staff or by staffing transfer desks with particularly knowledgeable staff from one airline. The “particularly knowledgeable” part is key – too often, airline staff are clueless as to who their partners are. Alliance standards can be useful to provide consistency (Elite Plus or Sapphire members receive benefits package X), but the gap is really in ensuring staff receive training and are responsible for keeping current.

An additional benefit can be in terms of true backend initiatives, like the London Heathrow Terminal 3 Integrated Baggage (T3IB) upgrade to the baggage systems underneath the primary oneworld terminal in London. Heathrow is the largest oneworld connection airport, with more connecting passengers from one oneworld airline to another than any other hub in the world.

With the alliance split by necessity between terminals 3 and 5, its 90-minute minimum connection time is more than three times Vienna’s 25 minutes and Munich’s 30 – and will be longer than Star Alliance’s MCT of 60 minutes in Terminal 2.

An upgraded baggage system is the first step towards reducing those numbers, with a decent passenger transportation system (potentially the convenient, driverless Heathrow Pods) also high on the wish list.

Baggage

Baggage drop positions tend to be marked in the same way as checkin desks, but only top-tier frequent flyers can usually drop extra bags when flying on alliance partner airlines.

SkyTeam’s Elite frequent flyers receive either an extra 10kg (20kg for Elite Plus cardholders) or an extra piece, depending on how the operating airline measures baggage.

Star Alliance Gold and oneworld Emerald passengers get an extra 20kg or an extra bag.

These benefits don’t usually match up to what frequent flyers see ontheir home airline’s flights. Delta’s base tier Silver cardholders receive two extra free bags on the airline’s Australia flights, yet are not entitled to baggage benefits as SkyTeam Elite cardholders when flying with partner airlines.

Similarly, Qantas Gold frequent flyers get an extra piece or extra 16kg allowance when flying economy on Qantas, but not on oneworld carriers. Frustratingly from a consistency perspective, Qantas Gold members do get extra benefits when flying on the Red Roo’s non-aligned partner Emirates’ Europe, Middle East, Africa and Asia Pacific flights, even if the flight is marketed by Emirates.

Frequent flyers want airlines to extend baggage allowances further across their alliance partners, since that’s likely to be exactly when a valuable customer wants and needs a baggage allowance benefit – flying off on holiday on a partner airline rather than packing light for a quick business trip.

Priority baggage is another area of inconsistency and confusion.

Oneworld doesn’t offer an alliancewide priority baggage benefit, even though several airlines including American Airlines, British Airways and Japan Airlines offer fluorescent baggage tags marked “oneworld priority”.

It’s no wonder that oneworld priority baggage is a frequent point of confusion and bewilderment – this surely isn’t beyond the realms of possibility, particularly

Too often, airline staff are clueless as to who their partners are.

since SkyTeam Elite Plus and Star Alliance Gold cardholders do receive priority baggage handling.

Overall, implementation of baggage benefits is notoriously poor, given the number of exceptions to the rules and the marketing/operating carrier split that even many frequent flyers do not understand. Alliances would do well to look at expanding the consistency of existing benefits as a first step towards extending the benefits themselves.

Lounges For many passengers, lounge access is the primary raison d’être of airline alliances. It’s important to be able to work and connect to Wi- Fi, relax with a drink, have a bite to eat or take a shower – and travellers with status will often pay more on their base ticket to enable them to gain lounge access.

SkyTeam Elite Plus and Star Alliance Gold cardholders have access to business class lounges, as do oneworld Sapphire members.

It’s awkward to be seen as the “don’t you know who I am” passenger.

Oneworld is the only alliance that allows its top-tier members to use first class lounges – a major benefit for the most frequent of flyers.

Interestingly, despite oneworld’s significantly better lounge benefits, the alliance doesn’t operate its own lounges, while both SkyTeam and Star Alliance have branded lounges for the use of their members in airports without an anchor carrier.

Buenos Aires’ Ezeiza airport was Star Alliance’s first foray into a new generation of branded lounges, in partnership with a local ground handling agent. Opening in 2013, the Terminal B facility serves eight alliance airlines and replaces significantly less impressive thirdparty facilities.

The current flagship Star Alliance lounge is the new LAX Tom Bradley International Terminal complex, with just under 1,700 square metres of space, a separate First Class section, two VIP rooms and an outdoor terrace with fire pit.

The new Star Alliance London Heathrow Terminal 2 lounge has yet to be revealed, but it can only be an improvement on the poky Terminal 1 facility that has been Star’s sole LHR offering since BMI (and its excellent Great British Lounge) was taken over by British Airways. Most Star Alliance airlines will move to T2 from their current homes in terminals 1, 3 and 4, with T1 due to close and T4 slated to be even more of a SkyTeam hub than it is today.

In Terminal 4, SkyTeam offers a remarkably pleasing lounge – significantly better than Star’s current T1 offering – cleverly designed with a futuristic style that doesn’t suggest one carrier over another.

Branded as SkyTeam Exclusive Lounge, there’s another in Istanbul and the alliance has plans to expand to Beijing, the first hub where a member (China Southern, whose main hub is in Guangzhou) has a dominant presence.

Yet a gap in all three alliances’ lounge network and benefits is the dreaded “third party lounge”, where all rules seem to be up for interpretation. Officially, the line for each alliance is akin to what oneworld says: “Access to some lounges operated by third-parties on behalf of oneworld member airlines may be restricted at some times”. It’s woolly enough that it might as well be accompanied by a shrug, and the trend towards alliance lounges will mean that it’s seen less and less in the future.

Boarding gate

Apart from the “welcome on board this flight in conjunction with our alliance partners” message, the boarding gate is the last place alliances are visible. Careful and standardised branding is useful here to ensure that premium cabin and status passengers are processed swiftly in the correct queues, without alienating everyone else on the plane. Like security, it’s awkward to be seen as the “don’t you know who I am” passenger trying to get to the front of the queue, and frustrating for people waiting in the economy line.

SkyTeam’s SkyPriority branding is the most clear at the gate, with the understated oneworld gems visible too. Star Alliance Gold tends to be the least well advertised, with branding often subsumed into the airline’s own style.

Airports with gate security screenings like Singapore Changi are particularly problematic here, with very few airlines holding dedicated gates. Signage is on waist-high poles, making it useless as soon as people stand in front.

This problem could be fixed by colocating gates between alliance members to provide permanent fixtures for signage to direct priority and non-priority passengers. Clearly, if the gates are not owned or leased by an airline or alliance, the signage would need to be either removable (velcro or similar fasteners higher on walls) or able to be covered or rotated when used by other airlines or alliances, but that’s not an insurmountable hurdle.

Whither alliances?

The trend of the last few years has been away from airline alliances, particularly in Australia, with Qantas’s Emirates strategy, the consolidation of Virgin Australia’s bilateral partnerships, and Air New Zealand’s strategic North Asia agreement with Cathay Pacific.

Yet with US and UK airline consolidation, increasing integration of the Air France-KLM and Lufthansa Groups in Europe, and entry into oneworld by Qatar Airways and Malaysia Airlines, the pendulum seems to be swinging back in the other direction.

Keep an eye out for how far it swings, especially if several key non-aligned international airlines like Emirates, Etihad, Virgin Australia, Virgin Atlantic and jetBlue start moving either way.