Transport company with preferential status From Wikipedia, the free encyclopedia
This article is about transport companies having flag-carrier status. For a naval ship which carries the flag, see flagship. For a person who carries the flag, see Flag bearer. For other uses, see Flag carrier (disambiguation).
A flag carrier is a transport company, such as an airline or shipping company, that, being locally registered in a given sovereign state, enjoys preferential rights or privileges accorded by the government for international operations.
Historically, the term was used to refer to airlines owned by the government of their home country and associated with the national identity of that country.[1] Such an airline may also be known as a national airline or a national carrier, although this can have different legal meanings in some countries. Today, it is any international airline with a strong connection to its home country or that represents its home country internationally, regardless of whether it is government-owned.[2][3]
Flag carriers may also be known as such due to laws requiring aircraft or ships to display the state flag of the country of their registry.[4] For example, under the law of the United States, a U.S. flag air carrier is any airline that holds a certificate under Section 401 of the Federal Aviation Act of 1958 (i.e., any U.S.-based airline operating internationally),[5]and any ship registered in the United States is known as a U.S. flag vessel.[6]
A Douglas DC-4 owned and operated by El Al - the flag carrier of Israel - in 1948
The term "flag carrier" is a legacy of the early days of commercial aviation when governments often took the lead by establishing state-owned airlines because of the high capital costs of running them. However, not all such airlines were government-owned; Pan Am, TWA, Cathay Pacific, Union de Transports Aériens, Canadian Pacific Air Lines and Olympic Airlines were all privately owned, but were considered to be flag carriers[7] as they were the "main national airline"[8] and often a sign of their country's presence abroad.[9][10]
The heavily regulated aviation industry also meant aviation rights are often negotiated between governments, denying airlines access to an open market. These Bilateral Air Transport Agreements similar to the Bermuda I and Bermuda II agreements specify rights awardable only to locally registered airlines, forcing some governments to jump-start airlines to avoid being disadvantaged in the face of foreign competition. Some countries also establish flag carriers such as Israel's El Al[11] or Lebanon's Middle East Airlines[12] for nationalist reasons or to aid the country's economy, particularly in the area of tourism.[13]
In many cases, governments would directly assist in the growth of their flag carriers typically through subsidies and other fiscal incentives. The establishment of competitors in the form of other locally registered airlines may be prohibited or heavily regulated to avoid direct competition.[14] Even where privately run airlines may be allowed to be established, the flag carriers may still be accorded priority, especially in the apportionment of aviation rights to local or international markets.[15]
Near the end of the 20th century, many of these airlines have been corporatized as a public company or a state-owned enterprise, while others have been completely privatized.[16] The aviation industry has also been gradually deregulated and liberalized,[17] permitting greater freedoms of the air particularly in the United States and in the European Union with the signing of the Open Skies agreement.[18] One of the features of such agreements is the right of a country to designate multiple airlines to serve international routes with the result that there is no single "flag carrier".[19]
The chart below lists airlines considered to be a "flag carrier", based on current or former state ownership or other verifiable designation as a national airline.
SAS is partly owned by the governments of Denmark and Sweden, and was partly owned by the government of Norway until June 2018. SAS is the flag carrier for all three nations.[78][79][80]
David Warnock-Smith and Peter Morrel (2008). "Air transport liberalisation and traffic growth in tourism-dependent economies: A case-history of some US-Caribbean markets". Journal of Air Transport Management 14. p.230.
Tai Hoon Oum and A.J. Taylor (1995). "Emerging Patterns in Intercontinental Air Linkages and Implications for International Route Allocation Policy". Transportation Journal, Vol. 34, No. 4 (SUMMER 1995). pp.5–27.
"EU To Impose Ban On Afghan Planes". Airwise News. 22 November 2010. Archived from the original on 24 May 2013. Kabul-based Safi is the country's No. 2 airline after national carrier Ariana Afghan Airlines.
Blachly, Linda (20 April 2018). "Aircraft Briefs-20 April 2018". Air Transport World. Archived from the original on 24 April 2018. Drukair, the flag carrier of Eastern Himalayan Kingdom of Bhutan, has signed a purchase agreement for one Airbus A320neo to support its growth plans and complement its existing fleet of three A319s.
Clark, Oliver (24 April 2016). "ROUTES: Air Nostrum still keen on Latin American growth post-Sol". Kraków: Flightglobal. Archived from the original on 21 August 2016. BoA Regional, a new joint venture in Paraguay with Bolivia's national carrier Boliviana de Aviacion, is "going well" and the airline is busy "developing new routes and working on new traffic rights to Brazil", says Oliver.
Blachly, Linda (31 July 2015). "Aircraft News-31 July 2015". Air Transport World. Archived from the original on 1 August 2015. The Canadian flag carrier took delivery of its first Dreamliner in May 2014 and will receive a total of 29 new 787-9s by 2019, in addition to eight 787-8 aircraft already in operation.
Blachly, Linda (4 January 2017). "Aircraft Briefs-4 Jan. 2017". Air Transport World. Archived from the original on 7 January 2017. Boeing delivered the 500th 787 Dreamliner, a 787-8 to Colombia flag carrier Avianca, during the week of Dec. 22, 2016.
Dron, Alan (30 April 2018). "Croatia again seeks airline partner". Air Transport World. Archived from the original on 30 April 2018. This is the third time in the past five years that the small central European state has tried to find a way of divesting itself of a controlling interest in the national carrier.
"First direct Brazil flight to take off in July". Cuba Standard. 29 June 2013. Archived from the original on 18 January 2018. Flag carrier Cubana de Aviación is resuming direct flights to Brazil with a Havana-São Paulo route on July 10, the tourism ministry said in a press release.
"Congo Airways to make international debut in mid-4Q". ch-aviation GmbH. 5 August 2016. Archived from the original on 3 September 2016. Effective November 1, the state-owned national carrier of the Democratic Republic of Congo (DRC) plans to operate a multiple-weekly service between Kinshasa N'Djili and Johannesburg O.R. Tambo, South Africa using A320-200 equipment.
Blachly, Linda (1 May 2015). "Airline News-1 May 2015". Air Transport World. Archived from the original on 1 May 2015. Air Greenland has joined the European Regions Airline Association (ERA), bringing the number of airlines in membership to 53. The flag carrier of Greenland is the third airline to join ERA this year.
Dron, Alan (6 June 2014). "Icelandair faces indefinite strike action". Air Transport World. Archived from the original on 6 June 2014. The threat of a potentially lengthy strike hung over Iceland's national airline, Icelandair, on Friday after the company's mechanics announced plans for industrial action.
Thisdell, Dan (14 August 2015). "Plane paint: Top 10 Indian liveries". London: Flightglobal. Archived from the original on 15 August 2015. With 102 aircraft in service, the state-owned flag carrier is still a big beast, but with just 11 on order it looks set to slip down the fleet size table.
Torr, Jeremy (2 June 2015). "Garuda Indonesia may be forced to change Amsterdam service". Air Transport World. Archived from the original on 5 June 2015. Indonesian flag carrier Garuda Indonesia may be forced to add a stopover to its recently introduced Jakarta-Amsterdam nonstop service as a result of runway certification problems at Soekarno-Hatta International Airport in Jakarta.
Dron, Alan (7 April 2017). "Kuwait Airways prepares for Amadeus switchover". Air Transport World. Archived from the original on 8 April 2017. Kuwaiti national carrier Kuwait Airways is to complete switching over its booking, ticketing and reservations system to the Amadeus Altéa Suite of products within the next six months.
Torr, Jeremy (9 January 2015). "Lao Airlines plans route expansion". Air Transport World. Archived from the original on 10 January 2015. Lao Airlines, the national carrier of Laos, will add a new route to its 19-destination network across the landlocked Southeast Asian country.
Rivers, Martin (20 December 2012). "PICTURE: Afriqiyah Airways unveils new livery". London: Flightglobal. Archived from the original on 30 December 2012. Retrieved 20 December 2012. Libyan flag carrier Afriqiyah Airways unveiled its new livery at an event in the Rixos Al Nasr Hotel, Tripoli on 19 December.
"Libya's economy recovers as airlines restore networks post-revolution". Centre for Aviation. 10 December 2012. Archived from the original on 18 February 2013. The country's two state-owned airlines, Libyan Air and Afriqiyah Airlines, which both suffered extensive damage to aircraft, resumed operations late 2011 and are gradually reestablishing their pre-war networks as aircraft return to service.
Kaminski-Morrow, David (19 April 2011). "Mozambique is latest state to face EU blacklist ban". London: Flightglobal. Archived from the original on 28 July 2013. All carriers from Mozambique, including flag-carrier LAM, are being placed on the European Union's blacklist of airlines, in addition to a pair of Boeing 767s operating for Air Madagascar.
Hofmann, Kurt (13 May 2016). "KLM expands long-haul network". Air Transport World. Archived from the original on 14 May 2016. The Dutch flag carrier also added a twice-weekly Amsterdam-Salt Lake City service on May 5, becoming 3X-weekly from July 4.
Morrison, Murdo (28 November 2014). "SOLDIERING ON: 10 veteran airliner types still in service". Flightglobal. London. Flight International. Archived from the original on 30 November 2014. If sightings of the Ilyushin Il-18, a Cold War era Russian large turboprop that first flew in 1957 and had its heyday in the 1960s, are fairly scarce these days – with 11 examples in service – ticking off the one example flown by Air Koryo must rank high on any planespotter's wishlist. North Korean travel agencies offer trips to enthusiasts to fly on aircraft belonging to the flag-carrier, described by one unkind journalist as the "world's only one-star airline".
"Oman Air reports record passengers, but also record losses". Centre for Aviation. 19 April 2012. Archived from the original on 4 October 2012. Retrieved 25 September 2012. Since the Oman Government took majority ownership in early 2007, the airline has lost a staggering OMR295 million (USD766.9 million).
Moores, Victoria (20 December 2017). "First seats from Boeing partner LIFT enter service". Air Transport World. Archived from the original on 2 January 2018. LOT Polish Airlines has become the launch customer for aircraft seating newcomer LIFT by EnCore, with the company's first product entering service on the Polish flag carrier's Boeing 737 MAXs.
Kaminski-Morrow, David (15 January 2015). "Aeroflot commits to another 20 Superjets". Flightglobal. London. Archived from the original on 15 January 2015. Russian flag-carrier Aeroflot has agreed to take another 20 Sukhoi Superjet 100s, under a tentative agreement with the airframer.
Schofield, Adrian (14 November 2017). "Samoan government says state airline must be self-sufficient". Air Transport World. The government of Samoa said the South Pacific country's state-owned airline must remain financially self-sufficient, as it relaunches international services. Samoa Airways began scheduled services with a flight to Auckland, New Zealand, on Nov. 14, and also will offer service to Australia.
"Sao Tome and Principe connected again". Times Aerospace. 5 May 2022. Retrieved 20 January 2023. STP Airways - the national airline of São Tomé and Príncipe has signed a wet lease contract with Portugal's regional operator Sevenair to operate flights between the country's islands.
Dron, Alan (5 May 2016). "Air Serbia's 2015 net profit up 44%". Air Transport World. Archived from the original on 6 May 2016. The Serbia flag carrier said the full-year results were achieved on the back of "significant growth" in passenger numbers, which increased 11% to 2.55 million year-over-year (YOY).
"Sudan Dreams Big With New Airports". Airwise News. Reuters. 31 October 2012. Archived from the original on 6 November 2012. Retrieved 6 December 2012. State-owned carrier Sudan Airways, known for its delays, has lost out to new carriers offering better service.
Pilling, Mark (24 December 2008). "Putting Surinam on the map". Flightglobal.com. Airline Business. Archived from the original on 9 October 2012. Retrieved 21 July 2012. The country's flag carrier is Surinam Airways, a small airline with ambitions to carve out a profitable niche connecting this former Dutch colony with the world.
Kuipers, Ank (20 July 2012). "Suriname state oil company considers share offering". Reuters. Archived from the original on 1 November 2013. Retrieved 21 July 2012. Suriname is also considering selling shares in telecommunications firm Telesur and Surinam Airways, which are state owned, and bank Hakrinbank, which is partly owned by the government.
"China Airlines". China Aviation Development Foundation. 5 November 2018. Archived from the original on 17 March 2023. Retrieved 17 March 2023. the government of the Republic of China still holds an indirect but majority shareholding.
Hofmann, Kurt (12 May 2015). "Turkish Airlines swings to net profit in 1Q". Air Transport World. Archived from the original on 13 May 2015. The Istanbul-based flag carrier flies to 45 domestic and 226 international destinations in 109 countries and operates 274 aircraft, comprising 62 widebody, 202 narrowbody and 10 cargo aircraft.
"Turkmenistan Airlines finalises B777-300ER purchase". ch-aviation GmbH. 4 September 2023. Archived from the original on 9 September 2023. The aircraft will be the first B777-300ERs in Turkmenistan Airlines' fleet, although the state-owned carrier already operates four B777-200(LR)s.
"Ukraine International to double international network as Aerosvit restructures". Centre for Aviation. 14 January 2013. Archived from the original on 22 January 2013. While a relatively large country (both in land mass and population – it has about 45 million people), the Ukrainian market (like many other markets in Eastern Europe) cannot easily sustain two large flag carriers, particularly as low-cost competition continues to increase.
Dron, Alan (17 June 2016). "Etihad, Avianca Brasil ink new codeshare". Air Transport World. Archived from the original on 17 June 2016. United Arab Emirates (UAE) flag carrier Etihad Airways has signed a codeshare agreement with Avianca Brasil in the Abu Dhabi-based carrier's latest move to increase its penetration in the South American market.
"Etihad Suspends Flights To Damascus". Airwise News. Reuters. 30 August 2012. Archived from the original on 3 September 2012. Retrieved 9 October 2012. The website of the UAE's other flag carrier, Emirates, says flights to Damascus remain operational.
"Profile: British Airways". BBC News. 20 September 2001. Archived from the original on 1 November 2013. In May the airline reported a sharp rise in profits and revealed that it was making more money from each customer than it has done since it was privatised in 1987.
Dron, Alan (30 March 2015). "Yemenia suspends services". Air Transport World. Archived from the original on 31 March 2015. The Yemen national carrier said it was suspending flight operations "until further notice due to the prevalent unfavorable operational situation and restriction imposed on Yemen airspace".
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