You must have heard of the airline alliances. These are the agreements between the airlines to form an organization on the mutually agreed principles and rules of governance. For any airline to join this alliance, there may be some eligibility criteria and an understanding to adhere by the existing rules of governance. What are these basic things on which the airlines form alliances?
1. Route sharing: When you want to take the international flights on a multiple leg journey, the airline preferred for the first leg of the journey might not necessarily operate the subsequent flights. If that airline is a member of an alliance, then it can seek the seats on another airline, which operates on those segments, providing the much needed connectivity to the passengers.
2. Revenue sharing: Since it is both the airlines which benefit from these alliances, there is an understanding to share the revenues of the flights. As there is likely to be increases occupancy rate for the plane seats in those sectors which are not travelled frequently by the passengers, there will be more revenues for the carrier, though the booking airline might have to part with some of revenues.
3. Benefits Extensions: For people looking to get the cheap international flights, it is important that their reward and loyalty points accumulated for one airline are extended to the other airline of the alliance so that the cheap tickets can be availed from that airline as well. This is generally an included feature in most of the alliance agreements in order to make it convenient and cheaper for the passengers of the airline.