Oneworld alliance sees revenues soar by 25%
Sunday, 08 Jun, 2009
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Record revenues of more than $850 million were generated from the sales activities of the Oneworld airline alliance in the past year.
More than eight million passengers transferred between member airlines’ flights in 2008 producing interline revenues within the alliance of $2.4 billion, up 10 per cent year-on-year in both cases.
Revenues from fares and sales activity in totalled more than $850 million, a rise of 25%.
The Oneworld revenues grew faster than member airlines’ overall passenger revenues, which collectively edged up just 3.5 per cent.
US regulators there due to rule by late October on the transatlantic anti-trust immunity application by member carriers American Airlines, British Airways, Finnair, Iberia and Royal Jordanian. They are also seeking regulatory approval from the European Union
Alliance sales in oneworld’s key European target markets of Belgium, France, Germany, Italy, the Netherlands and Switzerland – all home countries of airlines in or joining rival alliances – were particularly strong, a statement said. The number of accounts registered for its businessflyer corporate sales initiative for small and medium enterprises rose vt 12 per cent to almost 10,000.
A record 75% of revenues generated by the alliance’s fares coming from tickets sold for travel in premium cabins.
“Even though the turbulence buffeting the entire industry forced its member airlines into their first collective annual losses since 2003, benefits generated through their Oneworld membership enabled them to maintain their position as the grouping with the best financial track record,” a statement said.
Oneworld members combined lost $1.7 billion net against total losses by Star Alliance members of $8.8 billion and SkyTeam’s collective $13.3 billion deficit, it added.
The alliance claims to have generated a total of $5 billion for its member airlines through alliance fares and sales products in the past decade, with revenues rising by 330% from the $200 million reported in the Oneworld’s first year.
The results were revealed as the chief executives of its member airlines met in Kuala Lumpur for their mid-year governing board session.
Managing partner John McCulloch said: “The results from the past year and from Oneworld’s first decade as a whole make abundantly clear the growing value the alliance has added to all its key stakeholders.
“In an industry where profit margins are thin at best – let alone at times of global economic downturn – revenues and cost savings from Oneworld have made an increasingly important contribution to our member airlines’ financial standings.
”As we enter our second decade, the alliance’s strategy remains the same – focussing on the quality rather than quantity of our member airlines and on adding value for our customers and shareholders.”
by Phil Davies
Phil Davies
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