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05Building stronger airlines through interline partnerships
Interline partnerships allow passengers to book ‘through itineraries’ on two or more airlines with less hassle than booking each one separately. Interline partnerships give travelers the flexibility to choose the schedule and routing that meets their needs, while helping airlines grow their networks.
As airlines move to modern retailing, it will become much easier to establish such partnerships. Airlines will no longer be limited to partnering with others running on the same underlying technology or the lengthy process involved with setting up a new interline partnership. Instead, they will be able to connect to any other airline quickly and easily, irrespective of business model or underlying technology. This presents new opportunities, particularly for FSCs and LCCs that choose to work together.
Around a third (36%) of LCCs say
they are already partnering or
interlining with traditional
carriers today.
A significant 54% say they would consider partnering when the shift to Offers & Orders makes it easier for different types of airlines to partner. Only 8% said they would not consider this type of partnership in the future.
When asked about why they wanted to build such partnerships, LCCs cited access to higher value passengers as the top opportunity (54%), followed by an overall increase in bookings (50%) and the opportunity to offer greater choice and routes (44%).
Such new flexible partnerships promise to drastically expand the choice of air travel routes for passengers, while simplifying the booking process. Imagine booking a multileg international flight on your favorite FSC but having the freedom to begin your journey on an LCC. In this scenario, modern retailing would allow both LCC and FSC to exchange baggage and service conditions and be able to apply those agreed by the carriers for each leg.
What opportunities do you see from airlines forming closer partnerships with traditional network airlines –
known as interline partnerships?
Access to higher value fares
To drive more bookings
Offer passengers greater route options via partner/s
Opportunity to act as a short-haul ‘feeder’ for network airline long-haul routes
To sell ‘higher value’ fares e.g., business travelers
To sell additional ancillary services e.g. speedy boarding, extra leg room
