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Nathaniel Pieper

Nathaniel Pieper

Chief Executive Officer
oneworld
12 July 2024

oneworld is a global airline alliance founded in 1999 and based in Fort Worth Texas. It is made up of 13 member airlines including American Airlines, British Airways, Cathay Pacific Airways, Japan Airlines, Qantas Airways, and Qatar Airways, with Oman Air and Fiji Airways joining within the next 12 months. 

You joined oneworld in April 2024 on the year of its 25th anniversary. What motivated you to leave Alaska Airlines and join an alliance instead?

I've been in the airline industry for 27 years with my roles primarily focused on finance, alliances, and fleet management. I started with finance at Northwest Airlines, then moved to alliances with Northwest, and next worked on fleet acquisition and strategy projects at Delta Air Lines. My last role at Delta was based in Paris, overseeing Europe and managing alliances with Air France, KLM, and Virgin Atlantic.

At Alaska Airlines, I was the treasurer, managed aircraft activities, and led global alliances, driving Alaska's integration into oneworld. The new job appealed to me because it allowed me a return to the global arena, which I enjoyed during my time at Northwest and Delta. Additionally, it offered a chance to understand and strategize with the 13 (soon to be 15) member airlines. The analytical challenge of maximizing these partnerships and my passion for data and statistics also motivated me to take on this role.

Some question the relevance of airline alliances, given that while they can recommend changes, they have little influence over implementation from individual members. What would be your response to those skeptics?

Global alliances remain relevant, as evidenced by the significant media interest at our 25th anniversary press event. The primary motivation behind alliances like oneworld, Star Alliance, and SkyTeam is to extend network reach beyond what individual airlines can offer. This is achieved by partnering with airlines that share similar strategic goals and standards, ensuring consistent service across the network.

oneworld has grown from 4 original founding airlines to 13, and now soon to be 15. The focus has shifted from expanding the network to delivering a consistent, uniform customer experience across all member airlines. This includes seamless check-ins, loyalty program benefits, airport experiences, and more whether traveling on one airline or multiple carriers.

How does oneworld differentiate itself from the other two major global airline alliances - Star Alliance and SkyTeam? 

We have the fewest members among the global alliances, but our geographic coverage is on par with the others. We allow members to partner with non-alliance airlines, but our primary focus remains on strengthening relationships within oneworld.  Organic growth within the alliance is the priority above considering new members. If we identify a need for better coverage in certain regions, our first step is to discuss potential solutions with our existing member airlines.

In terms of potential expansion, we're focusing on China, India, and Latin America. We analyze global demand and compare it with our current network to identify gaps or "white spaces." Our first approach is to see if existing member airlines can fill these gaps through organic growth. If not, we consider adding new members.

However, we're cautious about adding new members if it will negatively impact existing ones. 

As you travel around the world speaking to the CEOs of member airlines, what are the shared pain points airlines are experiencing across the globe?

Air passenger travel continues to grow, driven by improved aircraft technology and increasing demand for travel experiences. However, airlines face two major challenges in aircraft availability and sustainability. Supply chain issues have delayed the delivery of new aircraft and engines, limiting growth. This is a temporary problem that should resolve itself in a few years.

However, the longer-term challenge is balancing the demand for air travel with sustainability objectives. This includes initiatives like sustainable aviation fuel (SAF) and achieving net zero emissions by 2050. Airlines must navigate these goals while maintaining profitability, making it a complex, multi-party problem that requires industry-wide cooperation.

Can you give us examples of sustainability initiatives that members are implementing which you believe should be replicated across the industry? 

I'm a big believer in using data to influence behavior. The IATA CO2 Connect program is a great example, providing traceable data on the carbon impact of flying. This data can help aircraft and engine manufacturers develop more environmentally friendly technology and inform government policies on sustainability. Having solid data helps everyone understand the problem and work towards solutions.

While the airline industry is often criticized for its emissions, we've moved past a victim mindset. Most major airlines are setting ambitious sustainability goals, like net zero by 2050 and increased use of SAF. These objectives are challenging, but they encourage collective investment and innovation. Even though the specifics may vary, the overall commitment to reducing environmental impact is a common theme. 

What technological advancements are oneworld focussed on to make the travel experience more seamless for passengers? 

Our goal is to make the connecting experience with multiple oneworld carriers feel the same as if you were flying with a single airline. An Alaska Airlines passenger flying to London and beyond via British Airways should be able to manage their entire journey through a single app, including check-in, boarding passes, lounge access, and baggage tracking. We are developing an automated multi-oneworld airline loyalty upgrade program, allowing customers to use points from one airline to upgrade to another. This program has already gone live between American Airlines and Qantas, with more airlines joining soon.