What the Etihad-Air France pact means to the airline industry


Skift Take

Although this brings Etihad one step closer to the Sky Team alliance, it also begs the question: What does a growing airline with 40 code-share agreements need from an alliance?

Air France-KLM Group secured an alliance agreement with Etihad Airways, the third-biggest Gulf carrier, extending a trend for Middle Eastern airlines to end an isolationist policy and seek accords with older operators. Based around code-shares which will allow the companies to sell tickets on each other’s flights beyond Paris, Amsterdam and Abu Dhabi, the pact is intended to be the first phase of a “much larger strategic partnership,” Etihad said in a statement. Today’s deal brings Etihad closer to Air France’s SkyTeam alliance a month after Qantas Airways Ltd. of Australia, a founder member of the rival Oneworld group, dropped a 17-year pact with British Airways in favor of an accord with Dubai-based Emirates, the biggest Gulf carrier. Regional No. 2 Qatar Airways Ltd. is also looking at alliance options, it said last week. “Whether Etihad will join SkyTeam isn’t clear, because they can do well enough adding