Air Berlin's Alliance Move Signals Big Strategy Ambitions
Yesterday I wrote about oneworld's surging presence, and today I focus on the most recent piece of news to come out of the alliance. Air Berlin will be joining the group -- a creative addition. Hopefully this shows a renewed focus on expansion of the alliance by looking at non-traditional airlines.
Air Berlin has a fascinating history. After World War ll, when the Allies controlled German airspace, it started as an American carrier operating between Berlin and tourist destinations in warmer, Southern Europe. Once control of Berlin's airspace returned to Germany, Air Berlin moved its base to its namesake city and continued to fly charters to tourist destinations. Eventually Air Berlin pursued something of a low cost carrier model within Europe. It added a long haul component when it bought LTU, so Air Berlin aircraft now fly to the US as well. It's now one of the largest airlines in Europe and number two in Germany, behind Lufthansa.
So what's so interesting about Air Berlin? It's not your typical alliance member. As a low cost and/or leisure carrier, it doesn't really fit into the traditional model of a big, network carrier-dominated alliance. Network carriers use the hub-and-spoke model which relies on connections, and they tend to get the biggest benefit in an alliance for that very reason. Alliances are all about connecting customers across the networks of member airlines. Low cost carriers generally focus on point to point flying and are also quite hesitant to join an alliance as doing so requires a significant investment.
But Air Berlin really is something of a hybrid airline, and undoubtedly wants to become more of a network carrier. Why? Two reasons.
First, the acquisition of LTU brought a whole new set of challenges. No airline has been able to consistently operate long haul, low cost flights. Most realize that connections to help fill the airplane are important. Air Berlin's flight from Miami to Berlin, for example, will benefit greatly by taking passengers arriving on American from the Caribbean and Latin America.
Second, there's bound to be opportunity when Berlin opens its new unified Brandenburg international airport in the next couple years. Berlin's airport operations were split thanks to the division of the city after World War II.
Berlin's primary airport before the war was Tempelhof, which ended up in the American sector after the city was divided. The more modern Tegel was built in the French sector and became the primary airport in West Berlin. Meanwhile, Schönefeld became East Berlin's main airport. Though Tempelhof was closed recently, air traffic in Berlin is still split between the other two airports.
That will all change in 2012 when Berlin Brandenburg opens on the site of Schönefeld. At that time, all air traffic in Berlin will use that airport. The concentration of air traffic at one airport is bound to increase Air Berlin's ability to use the city as a hub. Refashioning Air Berlin as a competitor to Lufthansa appears to be the plan.
To make that happen, it's important to have an alliance feed to help boost the airport's strength. Oneworld's lack of presence in Germany made Air Berlin a perfect fit.
It may not be a traditional addition, but it's a smart one that hopefully indicates that creative thinking is coming out of oneworld.
Related:
- Oneworld Alliance Surging, Adding Airlines -- and Finally Offering Customers Some Perks
- American, Oneworld Step Closer to Legitimacy With EU Approvals
- Alliance Panel at the Phoenix Aviation Symposium