SkyTeam is a global airline alliance founded in 2000 and based in the Netherlands. It consists of 19 member airlines including AirFrance, Delta Airlines, KLM, and Virgin Atlantic among other international names such as China Airlines, Middle East Airlines, and AeroMexico.
Having previously worked at the airline Air France KLM and now joined SkyTeam in 2022, what exactly is the benefit of being part of an airline alliance?
Before I joined SkyTeam, I was very involved in the alliance and partnership world; I was head of alliances for Air France KLM and held various roles always close to the partners. I did the sales integration with Delta Airlines in North America, and was head of Asia Pacific so I worked extensively with China Airlines, Vietnam Airlines, and Korean Air. The move to SkyTeam was a natural fit.
About 10 years ago, there was a real question mark over the future of alliances with the development of joint ventures and equity partnerships. However, COVID demonstrated the importance of being part of a family. Joint ventures are powerful but have a closed structure, making it complicated to include new partners. This has renewed the energy for alliances, emphasizing sharing best practices and developing business together.
You have claimed that SkyTeam does not aim to be the biggest airline alliance, but is the most integrated. What exactly do you mean by ‘integrated’?
It means having numerous joint ventures and equity partnerships among our members, ensuring SkyTeam is an extension of those benefits. For example, Virgin Atlantic was our latest acquisition because of its close relationship with Delta and Air France KLM, so it was sensible to have SkyTeam benefits attached. The next member will be SAS, aligning with our strategy due to their growing closeness with Air France KLM and Delta. This integration provides consistency and benefits to customers and shows the real value of this integration.
One of Star Alliance’s founding members - Scandinavian Airlines (SAS) - is due to join SkyTeam in September 2024. Given that moving alliances is a costly business, why is this departure happening?
The primary reason is customer benefit. Having close relationships with Air France, Delta, and other SkyTeam partners makes sense for SAS customers. This shift creates additional benefits, like our digital hub. While it may not indicate a broader trend, it reflects the alignment with joint ventures and equity partnerships. Alliances are extensions of these partnerships, and it’s awkward to be in one alliance while your main business partners are in another.
You stated that your newest members Virgin Atlantic and SAS are ‘close to the existing members’. Is there a typical profile of a SkyTeam member?
We ensure each new member has a rich and consistent market share and unique attributes that benefit others so would not include an airline with no partnerships among existing members. This means organic growth and that customer benefits and seamless experiences are naturally expanded and fit within our existing structure. When a partner has many SkyTeam connections, it's logical to enhance the customer experience through integration.
How have your members been experiencing the rise in demand and increased traffic among both business and leisure travellers?
We saw rapid demand growth after COVID, faster than I expected, however, the mix has changed. Previously, corporate business traffic was predominant, but now there's a blend of high-yield leisure traffic and more individual business travel. Big corporations are applying cost-saving measures, reducing their travel, but this is balanced by other traffic flows, which is positive.
Different patterns and booking curves have emerged, varying by continent. The North Atlantic route, in particular, has shown very solid traffic, even stronger than before. The capacity returned quickly, driven by the dynamic US market eager to travel again, and airlines had extra capacity as some countries in Asia were still restricted.
Digital and sustainability are key pillars of your strategy. How are you leveraging technological innovation to improve the customer journey and sustainable practices?
Our members demand seamless digital solutions for their travelers. For example, a Delta customer should stay within their Delta app for check-in, baggage tracking, and flight information, regardless of the SkyTeam airline they travel with. We're developing a digital spine to allow this seamless experience across all SkyTeam airlines. This approach also reduces costs for members by eliminating the need for bilateral IT solutions.
We are now in the third year of the ‘Sustainable Flight Challenge’, initially a friendly competition among members to test and share new ideas for accelerating the transition to sustainability. It now focuses on implementing and adopting successful ideas. This year includes airlines outside SkyTeam - like TUI and Corendon - which shows there is industry-wide interest. We're also planning to involve universities in organizing a broader challenge to engage new generations, who are very sustainability-conscious, and to see how they envision the future of aviation.
Can you share a notable example of an airline member implementing green initiatives observed by the end users?
Last year Kenya Airways became the first African airline to use sustainable aviation fuel (SAF) on an international flight, but it's not only about SAF. Pilots optimizing routes, energy consumption on board and at airports, and new approaches to loyalty programs are all part of our efforts.
Some airlines are exploring rewarding green behaviors, like reducing onboard weight by having meals in the lounge before flights. Combining flights to reduce emissions is another idea, like flying to New York and Seoul on one trip instead of in separate weeks.
Alliances can encourage and recommend changes for their members, but have less control over implementation from members. Do you find this can be limiting or frustrating for you?
It's not frustrating; we never act on behalf of the members; it's their responsibility. We provide a platform for accelerating, exchanging best practices, and giving them the right tools. Although members are competitors, we help them align through a neutral platform that bundles different offers for corporate contracts, for example.
We support them technically and commercially without intervening in policies. This neutrality allows us to assist effectively without causing conflicts of interest. The industry is entering exciting territories in innovation and sustainability. We co-created our five-year plan with members, ensuring their involvement and ownership of projects.
