Book a Qantas flight to Europe, and you might end up on a different airline for part of the trip. Here’s how airline alliances and codeshares work, and why they matter for travellers and competition.
No airline can fly everywhere. Alliances and partnerships let airlines offer passengers more destinations, by connecting their own networks with those of other airlines.
The big three
There are three major global airline alliances.
Oneworld includes Qantas, British Airways, American Airlines, Cathay Pacific, Japan Airlines, Qatar Airways and others.
Star Alliance is the largest, and includes Air New Zealand, Singapore Airlines, United Airlines, Lufthansa, Air Canada and Thai Airways.
SkyTeam includes Delta Air Lines, Air France, KLM, Korean Air and others.
What members get
Members of an alliance link their frequent flyer programs, so travellers can earn and use points and status across the group. Higher-tier frequent flyers can use partner airlines’ lounges and get priority treatment.
Alliances also make it easier to book trips involving several airlines on one ticket, with bags checked through to the final destination and help if a connection is missed.
Codeshares
A codeshare is an arrangement where one airline sells seats on a flight operated by another airline, under its own flight number. That’s why a single flight can show several flight numbers on airport screens.
Codeshares let airlines offer more destinations without flying the routes themselves. Passengers should always check which airline actually operates their flight, as baggage rules, seats and service can differ.
Joint ventures
Some airlines go further, forming joint ventures in which they coordinate schedules and prices and share revenue on certain routes, almost as if they were one airline.
Because that can reduce competition, joint ventures usually need approval from regulators. In Australia, the Australian Competition and Consumer Commission assesses them and can authorise them if the benefits to the public outweigh the harm to competition.
Qantas has partnerships with Emirates, American Airlines and others, while Virgin Australia isn’t in a global alliance but has partnerships with airlines including Qatar Airways, which bought a 25% stake in Virgin Australia in 2025, as well as Air New Zealand, United and others.
The benefits and the risks
Airlines say alliances and partnerships give travellers more choice, better connections and more rewards, while helping airlines fill planes and cut costs.
Critics and regulators warn they can reduce competition and lead to higher fares on some routes, especially when partners that would otherwise compete coordinate their prices. That’s why the ACCC often approves deals only with conditions, or for a limited time.
