Flag carrier
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A flag carrier is a transportation company, such as an airline or shipping company, that, being locally registered in a given state, enjoys preferential rights or privileges, accorded by the government, for international operations. It may be a state-run, state-owned or private but state-designated company or organization. Flag carriers may be known as such due to maritime law requiring all aircraft or ships to display the state flag of the country of their registry.[1]
A flag carrier (if it is a certificated airline rather than a holding company, conglomerate, or multinational private equity firm) may also be known as a national airline or a national carrier, although this can have different legal meanings in some countries.
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[edit] Background
The term "flag carrier" is a legacy of the time when countries established state-owned airline companies. Governments then took the lead due to the high capital costs of establishing and running airlines. The heavily regulated aviation industry also meant aviation rights are often negotiated between governments, denying airlines the right to an open market. These Bilateral Air Transport Agreements similar to the Bermuda I and Bermuda II agreements specify rights awardable only to locally registered airlines, forcing some governments to jump-start airlines to avoid being disadvantaged in the face of foreign competition. Some countries also establish flag carriers for nationalist reasons, or to aid the country's economy, particularly in the area of tourism.[citation needed]
In many cases, governments would directly assist in the growth of their flag carriers typically through subsidies and other fiscal incentives. The establishment of competitors in the form of other locally registered airlines may be prohibited, or heavily regulated to avoid direct competition. Even where privately run airlines may be allowed to be established, the flag carriers may still be accorded priority, especially in the apportionment of aviation rights to local or international markets. In the United States, for example, funding for international travel by government employees is restricted to "US flag air carriers" under the Fly America Act,[2] however, this coincidental terminology should not be confused with traditional flag carriers.[citation needed]
In the last decade, however, many of these airlines have since been corporatized as a public company or a state-owned enterprise, or completely privatized. The aviation industry has also been gradually deregulated and liberalized, permitting greater Freedoms of the air particularly in the United States and in the European Union with the signing of the Open Skies agreement. This has rendered the designation of "flag carriers" less important than it was in the past.[citation needed]
The term is also used loosely to refer to any dominant or major airline sized carrier in a country, or in reference to a mainline carrier with a history of a state sponsored legacy of airline service, even long after their privatization.[citation needed]
[edit] List of flag-carrying airlines
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The chart below lists airlines considered to be a "flag carrier", based on current or former state ownership, or other verifiable designation as a national airline.
[edit] See also
[edit] Footnotes
[edit] Notes
- ^ SAS is partly owned by the governments of Denmark, Norway and Sweden, and is the flag carrier for all three nations.
[edit] References
- ^ "flag carrier definition". Businessdictionary.com. http://www.businessdictionary.com/definition/flag-carrier.html. Retrieved 2009-05-22.
- ^ Guidelines for International Travel Paid for by the Government. Wright State University.
- ^ "EU To Impose Ban On Afghan Planes". Airwise News. 22 November 2010. Archived from the original on 5 March 2012. http://www.webcitation.org/65wSqzKWE. "Kabul-based Safi is the country's No. 2 airline after national carrier Ariana Afghan Airlines.."
- ^ https://www.flyariana.com/subpage.php?id=12
- ^ "Air Algerie Eyeing African Tie-Ups - CEO". Airwise News. 29 April 2008. Archived from the original on 5 March 2012. http://www.webcitation.org/65wTTYQ0F. "Algeria's national airline Air Algerie is considering tie-ups..."
- ^ http://www.airalgerie.dz
- ^ Cathy Buyck (14 June 2011). "Ex-Im Bank arranges financing for TAAG 777-300". http://atwonline.com/airline-finance-data/news/ex-im-bank-arranges-financing-taag-777-300-0613. Retrieved 8 February 2012. "The aircraft will be used to expand the Angolan national flag carrier’s intercontinental service provided by its all-Boeing fleet."
- ^ "Argentina Wants Aerolineas To Fly To Falklands". Airwise News. 1 March 2012. Archived from the original on 2 March 2012. http://www.webcitation.org/65rzV7DQB. "Argentina's president said on Thursday she wants her country's flag carrier, Aerolineas Argentinas, to fly to the disputed Falkland Islands..."
- ^ Plummer, Robert (2008-07-22). "Argentine airline set for bumpy ride". BBC News. http://news.bbc.co.uk/2/hi/business/7519069.stm.
- ^ Siva Govindasamy (6 February 2012). "Qantas CEO pushes back against proposed legislative changes". Flightglobal.com (Singapore). http://www.flightglobal.com/news/articles/qantas-ceo-pushes-back-against-proposed-legislative-changes-367797/. Retrieved 8 February 2012. "The Qantas Sale Act was passed in 1993 when the airline was privatised and the main aim of the act is to keep the airline "a majority Australian-owned flag carrier"."
- ^ http://www.qantas.com.au/travel/airlines/history-1990/global/en
- ^ "Bangladesh To Buy 8 Boeings For USD$1.3 Bln". Airwise News. 10 March 2008. Archived from the original on 5 March 2012. http://www.webcitation.org/65wU39aAR. "National carrier Biman Bangladesh Airlines said on Monday it agreed to buy eight Boeing aircraft..."
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- ^ Flight International 27 March 2007
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- ^ CBC News. http://www.cbc.ca/news/background/aircanada/timeline.html.
- ^ "BOC Aviation to lease one new A320-200 to LAN". Air Transport World. 3 December 2010. http://atwonline.com/aircraft-engines-components/news/boc-aviation-lease-one-new-a320-200-lan-1202. Retrieved 14 February 2012. "This deal marks the second time that BOC has worked with Chile’s flag carrier."
- ^ Kirsty McGregor (10 January 2012). "Chinese carriers could be banned from Europe over ETS row". Flightglobal.com (London). http://www.flightglobal.com/news/articles/chinese-carriers-could-be-banned-from-europe-over-ets-row-366723/. Retrieved 8 February 2012. "The China Air Transport Association, which represents the country's four major airlines, including flag carrier Air China, is reported to have said that it would not comply with the European Union's Emissions Trading System (ETS), which came into effect on 1 January."
- ^ Air China Transfers Ownership from State-owned to Shareholding. Beijing:Sino-Cast, October 7, 2004, reprinted in Highbeam Business. Retrieved on 2011-07-01.
- ^ "Avianca set to debut new Orlando flights in July". Flightglobal.com. 20 May 2011. http://www.flightglobal.com/news/articles/avianca-set-to-debut-new-orlando-flights-in-july-357015/. Retrieved 14 February 2012. "Colombia's flag carrier will compete directly with JetBlue Airways, which has operated the Orlando-Bogota pairing since 2009, and operates five weekly flights in the market."
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- ^ Cathy Buyck (3 February 2012). "Ecuador may partially privatize TAME". Air Transport World. http://atwonline.com/airline-finance-data/news/ecuador-may-partially-privatize-tame-1031. "Ecuador’s national flag carrier operates on a mostly domestic network and some international routes to Colombia, Cuba, the Dominican Republic and Panama..."
- ^ http://www.estonian-air.ee/estonian_air_profile
- ^ "Fiji Takes Control Of Air Pacific From Qantas". Airwise News. 28 March 2012. Archived from the original on 30 March 2012. http://www.webcitation.org/66YP7AEXz. Retrieved 30 March 2012. "Fiji's military government on Wednesday said it would take control of national carrier Air Pacific from Australia's Qantas Airways..."
- ^ http://www.centreforaviation.com/analysis/air-pacific-will-not-fail-as-restructuring-continues-ownership-questions-remain-55537
- ^ http://www.etravelblackboard.com/showarticle.asp?id=78216&nav=130
- ^ http://www.finnairgroup.com/group/group_1.html
- ^ a b Cathy Buyck (18 October 2011). "Air France KLM Group CEO resigns; Spinetta and Van Wijk return". Air Transport World. http://atwonline.com/airline-finance-data/news/2-4-air-france-klm-group-ceo-resigns-spinetta-van-wijk-return-photo-air-fr. Retrieved 14 February 2012. "The two men masterminded Europe’s first merger between two flag carriers in 2004."
- ^ Michael Gubisch (23 May 2011). "Germany keeps Emirates in check over expansion". Flightglobal.com (London). http://www.flightglobal.com/news/articles/germany-keeps-emirates-in-check-over-expansion-357017/. Retrieved 14 February 2012. "Germany's flag carrier Lufthansa flies to Abu Dhabi and Dubai from Frankfurt and Munich."
- ^ "German Cabinet Backs Selling Lufthansa". The New York Times. 1997-01-15. http://www.nytimes.com/1997/01/15/business/german-cabinet-backs-selling-lufthansa.html.
- ^ a b "Ελληνικές Αεροπορικές Εταιρίες [Greek Airline Companies]". http://library.techlink.gr/ptisi/article-main.asp?mag=2&issue=165&article=4194. Retrieved 14 August 2011.
- ^ http://www.china.org.cn/english/business/242824.htm
- ^ "Air China to Raise Cathay Pacific Stake to 29.99% (Update2)". Bloomberg. 2009-08-17. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKmSAFQx7enw.
- ^ a b "Brand Guideline". Brand Hong Kong. 2010. http://www.brandhk.gov.hk/en/#/en/about/guidelines.html. Retrieved 2011-07-22.
- ^ http://www.airliners.net/photo/Cathay-Pacific-Airways/Boeing-747-467/0807280/M/
- ^ Alan Dron (26 May 2011). "Icelandair to transfer purchase rights on three 787s to Norwegian". Flightglobal.com (London). http://www.flightglobal.com/news/articles/icelandair-to-transfer-purchase-rights-on-three-787s-to-norwegian-357234/. Retrieved 14 February 2012. "Scandinavian budget carrier Norwegian has signed a letter of intent with Icelandair Group affiliate company IG Invest for the right to acquire three Boeing 787-8s on order for the Icelandic flag carrier."
- ^ Siva Govindasamy (23 September 2011). "Report lays bare Air India woes". Flightglobal.com. Airline Business (Singapore). http://www.flightglobal.com/news/articles/report-lays-bare-air-india-woes-362469/. Retrieved 8 February 2012. "If only the solution to the Indian flag carrier's problems were so simple."
- ^ http://www.airindia.in
- ^ Siva Govindasamy (2 February 2012). "Garuda picks Bombardier for regional jet order". Flightglobal.com (Singapore). http://www.flightglobal.com/news/articles/garuda-picks-bombardier-for-regional-jet-order-367698/. Retrieved 8 February 2012. "Indonesia's flag carrier had been assessing both the Bombardier CRJ1000 and Embraer 190 for its 18-aircraft sub-100 seat regional jet requirements since early 2011."
- ^ http://www.bloomberg.com/news/2010-07-29/iran-air-plans-share-sale-to-finance-growth-fleet-upgrade-amid-sanctions.html Accessed on 14th September 2011
- ^ David Kaminski-Morrow (15 November 2011). "El Al to use electric nose-gear drive for 737 taxiing". Flightglobal.com. Flight International (London). http://www.flightglobal.com/news/articles/el-al-to-use-electric-nose-gear-drive-for-737-taxiing-364370/. Retrieved 8 February 2012. "Israeli flag-carrier El Al is to become an initial customer for an electric nose-gear drive system, designed to enable aircraft to taxi without the use of engines."
- ^ http://www.elal.co.il/ELAL/English/AboutElAl/History.htm
- ^ David Kaminski-Morrow (25 January 2012). "Alitalia plans merger with Blue Panorama and Wind Jet". Flightglobal.com (London). http://www.flightglobal.com/news/articles/alitalia-plans-merger-with-blue-panorama-and-wind-jet-367399/. Retrieved 8 February 2012. "Italian flag-carrier Alitalia has tentatively agreed to merge with fellow Italian operators Blue Panorama and Wind Jet."
- ^ Linda Blachly (13 August 2010). "Air Astana posts record first-half profit". Air Transport World. http://atwonline.com/airline-finance-data/news/air-astana-posts-record-first-half-profit-0812. Retrieved 10 August 2011. "The flag carrier of the Republic of Kazakhstan said passenger numbers increased by 14% with an average passenger load factor of 66%."
- ^ a b Cathy Buyck (1 November 2010). "Kenya Airways’ Uplifting Mission". Air Transport World. http://atwonline.com/airline-finance-data/article/kenya-airways-uplifting-mission-1028. Retrieved 14 February 2012.
- ^ a b Cathy Buyck (2 August 2011). "Kuwait Airways privatization launched; 35% stake up for sale". Air Transport World. http://atwonline.com/airline-finance-data/news/kuwait-airways-privatization-launched-35-stake-sale-0801. Retrieved 10 August 2011. "The Kuwaiti government launched the privatization of struggling flag carrier Kuwait Airways, putting up for sale 35% of the carrier's KWD220 million ($806.8 million) share capital."
- ^ http://www.airbaltic.com/public/corporate_profile.html
- ^ "Malaysia Airlines posts loss, AirAsia profit down". USA Today. 2011-08-24. http://travel.usatoday.com/flights/story/2011-08-24/Malaysia-Airlines-posts-loss-AirAsia-profit-down/50118112/1.
- ^ http://www.airmalta.com
- ^ http://www.miat.com
- ^ David Kaminski-Morrow (19 April 2011). "Mozambique is latest state to face EU blacklist ban". Flightglobal.com (London). http://www.flightglobal.com/news/articles/mozambique-is-latest-state-to-face-eu-blacklist-ban-355734/. Retrieved 14 February 2012. "All carriers from Mozambique, including flag-carrier LAM, are being placed on the European Union's blacklist of airlines..."
- ^ "Air New Zealand H1 Profit Down On Fuel Costs". Airwise News. 23 February 2012. Archived from the original on 5 March 2012. http://www.webcitation.org/65w9n2gbk. "National carrier Air New Zealand reported a 61 percent fall in first half profits as fuel prices pushed higher..."
- ^ http://www.beehive.govt.nz/release/government-pursue-mixed-ownership-model
- ^ http://www.interest.co.nz/news/58930/govt-considering-giving-itself-special-power-approve-or-deny-energy-company-board-chairs-
- ^ "Air Koryo". http://www.korea-dpr.com/airkoryo.htm. Retrieved 31 August 2011.
- ^ "Pakistan International". http://www.piac.com.pk.jsp.
- ^ Mavis Toh (31 January 2012). "Cebu Pacific to start long-haul, low-cost services in 2013". Flightglobal.com (Manila). http://www.flightglobal.com/news/articles/cebu-pacific-to-start-long-haul-low-cost-services-in-2013-367568/. Retrieved 8 February 2012. "The long-haul plans will put it in competition against flag carrier Philippine Airlines, although the full-service carrier does not fly directly to the Middle East or to Europe."
- ^ "LOT Corporate Information". PLL LOT. 2007. Archived from the original on 2007-09-28. http://web.archive.org/web/20070928211354/http://www.lot.com/Portal/EN/aspx/Content_Ownership_Structure.aspx. Retrieved 2007-10-01.
- ^ "TAP Portugal History". Flytap.com. http://www.tapportugal.com/Info/en/FleetHistory/History. Retrieved 2011-08-16.
- ^ "Mission and people". tarom.ro. http://www.tarom.ro/en/tarom-company/goals/. Retrieved 2011-10-28.
- ^ Tom Zaitsev (23 January 2012). "Aeroflot to replace Superjets with customised versions". Flightglobal.com (Moscow). http://www.flightglobal.com/news/articles/aeroflot-to-replace-superjets-with-customised-versions-367214/. Retrieved 8 February 2012. "Russian flag carrier Aeroflot is to replace its Sukhoi Superjet 100 aircraft with new, fully-customised variants after the airframer finishes building them to its original specifications."
- ^ "Virgin Samoa Is Now The New National Airline Of Samoa". 2011-12-07. http://blog.virginaustralia.com/news/virgin-samoa-is-now-the-new-national-airline-of-samoa/.
- ^ "Virgin Blue picks up Samoa flights". CNN. 2005-07-14. http://edition.cnn.com/2005/BUSINESS/07/14/samoa.virginblue/.
- ^ Kurt Hofmann (14 July 2010). "Airline merger talks between THY, Serbia’s Jat intensify". Air Transport World. http://atwonline.com/international-aviation-regulation/news/airline-merger-talks-between-thy-serbia-s-jat-intensify-0713. Retrieved 10 August 2011. "The governments of Serbia and Turkey have pledged to speed up talks that could result in indebted Serbian flag carrier Jat Airways merging with Turkish Airlines."
- ^ "UPDATE 2-Singapore Air Q1 net profit beats f'cast". Reuters. 26 July 2010. http://www.reuters.com/article/idUSSGE66P0EH20100726. Retrieved 6 August 2010.
- ^ http://www.heathrowterminal4.co.uk/flights/airlines-and-operators/
- ^ http://www.skyteam.com/About-us/Our-members/Korean-Air/
- ^ "Participaciones significativas - Iberia". Grupo.iberia.es. http://grupo.iberia.es/portal/site/grupoiberia/menuitem.5dcd178a7f0a73be19736c10d21061ca/. Retrieved 2009-05-22.
- ^ "SriLankan Airlines buys back 43.6 pc stake from Emirates". The Economic Times. 2010-06-07. http://articles.economictimes.indiatimes.com/2010-06-07/news/28401427_1_dubai-s-emirates-airlines-pc-stake-cent-stake. Retrieved 20 November 2011.
- ^ "CAL at a Glance". http://www.china-airlines.com/en/about/about-1-1.htm.
- ^ "THAI Company Information: History". http://www.thaiairways.com/about-thai/company-profile/en/history.htm.
- ^ "Caribbean Airlines takes delivery of first ATR 72-600". Flightglobal.com. 9 November 2011. http://www.flightglobal.com/news/articles/caribbean-airlines-takes-delivery-of-first-atr-72-600-364504/. Retrieved 8 February 2012. "Caribbean Airlines said that it will deploy some of its new ATR 72-600s in the domestic route network of Air Jamaica, which was recently acquired by Trinidad and Tobago's flag carrier."
- ^ "Caribbean Airlines: News/PR". http://www.caribbean-airlines.com/index.php/contact-us/newspr/2010.
- ^ "ATW's 2011 Airline Market Leadership - Turkish Airlines". Air Transport World. 1 February 2011. http://atwonline.com/airline-finance-data/article/atws-2011-airline-market-leadership-turkish-airlines-0201. Retrieved 14 February 2012. "The traffic and revenue performance of this year’s Market Leadership Award winner more closely resembles that of a low-fare carrier or Middle Eastern startup than a mature flag airline with more than 75 years of history."
- ^ a b "Etihad Holds Roadshows To Finance Aircraft". Airwise News. 23 February 2012. Archived from the original on 5 March 2012. http://www.webcitation.org/65wAEMVW4.
- ^ Harrison, Michael (1992-10-24). "Dan-Air swallowed up by BA: Rivals say competition and choice will be cut by takeover that will axe 1,900 jobs". The Independent (London). http://www.independent.co.uk/news/danair-swallowed-up-by-ba-rivals-say-competition-and-choice-will-be-cut-by-takeover-that-will-axe-1900-jobs-1559258.html.
- ^ "European airline buys 4 Bombardier Q400 planes". Reuters. 2011-08-16. http://ca.reuters.com/article/businessNews/idCATRE77F5E020110816.
- ^ Willey, David (2008-04-15). "Pope's US tour: Reporter's diary". BBC News. http://news.bbc.co.uk/2/hi/americas/7349513.stm.
- ^ "Vietnam Airlines becomes limited liability company". 2010-06-25. http://english.thesaigontimes.vn/Home/business/other/11036/.
- ^ David Kaminski-Morrow (13 December 2011). "Yemenia faces mounting French pressure over crash probe". Flightglobal.com (London). http://www.flightglobal.com/news/articles/yemenia-faces-mounting-french-pressure-over-crash-probe-365758/. Retrieved 3 February 2012. "Yemeni flag-carrier Yemenia could come under pressure from the European Commission..."
- ^ "Trade body suspends Air Zimbabwe". BBC News. 4 February 2004. http://news.bbc.co.uk/2/hi/africa/3459139.stm. Retrieved 8 November 2011. "The company is the national carrier of Zimbabwe..."
- ^ "AFRAA current members – Air Zimbabwe". AFRAA. 26 April 2011. http://www.afraa.org/index.php/membership/current-members/item/61. Retrieved 8 November 2011.
[edit] External links
- International Air Transport Association Organisation formerly responsible for managing air services agreements and international fares.
- US Maritime Administration
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