The story of Star Alliance

In the mid-1990s, commercial aviation was experiencing rapid globalization, and airlines were seeking new ways to expand their networks, reduce operational costs, and enhance customer loyalty without the capital-intensive process of acquiring new routes or fleets. Bilateral codeshare agreements were no longer enough to meet the need, and the concept of a broader alliance of multiple carriers emerged. When the concept became reality, it would fundamentally change the way we travel. Legacy carriers tout the alliance benefits of expanded networks and greater rewards for loyal customers. Skeptics will say that alliances only came about as a defense strategy for legacy carriers against emerging low-cost carriers. Likely it was a bit of both, but over the space of three years in the late 1990s, three new global alliances emerged. Let's take a closer look at the first and the largest: Star Alliance. Star Alliance was founded in May 1997 by Air Canada, Lufthansa, Scandinavian Airlines (SAS), Thai Airways, and United Airlines. Headquartered in Frankfurt, Germany, the new alliance adopted a star‑shaped logo with five points, each representing one of the founding members. It also launched with the slogan “The Airline Network for Earth,” looking to emphasize its ambition of seamless global connectivity. The primary motivations for forming Star Alliance were clear. First and foremost, it enabled network expansion for alliance members by tapping into the networks of partners rather than having to make capital investments. This created a competitive advantage and helped drive increased passenger revenues and loyalty. However, operational integration and pooling of resources such as lounges and ground handling also helped to reduce costs. From a passenger perspective, integrated frequent‑flyer programs across multiple carriers significantly raised their perks. Story has more.<br/>