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Flag carrier

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A Boeing 777-300ER of Dubai-based Emirates, one of the two flag carriers of the United Arab Emirates

A flag carrier is a transport company, such as an airline or shipping company, that, being locally registered in a given sovereign state, enjoys preferential rights or privileges accorded by the government for international operations.

Historically, the term was used to refer to airlines owned by the government of their home country and associated with the national identity of that country.[1] Such an airline may also be known as a national airline or a national carrier, although this can have different legal meanings in some countries. Today, it is any international airline with a strong connection to its home country or that represents its home country internationally, regardless of whether it is government-owned.[2][3]

Flag carriers may also be known as such due to laws requiring aircraft or ships to display the state flag of the country of their registry.[4] For example, under the law of the United States, a U.S. flag air carrier is any airline that holds a certificate under Section 401 of the Federal Aviation Act of 1958 (i.e., any U.S.-based airline operating internationally),[5]and any ship registered in the United States is known as a U.S. flag vessel.[6]

Background

[edit]
A Douglas DC-4 owned and operated by El Al - the flag carrier of Israel - in 1948

The term "flag carrier" is a legacy of the early days of commercial aviation when governments often took the lead by establishing state-owned airlines because of the high capital costs of running them. However, not all such airlines were government-owned; Pan Am, TWA, Cathay Pacific, Union de Transports Aériens, Canadian Pacific Air Lines and Olympic Airlines were all privately owned, but were considered to be flag carriers[7] as they were the "main national airline"[8] and often a sign of their country's presence abroad.[9][10]

The heavily regulated aviation industry also meant aviation rights are often negotiated between governments, denying airlines access 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 such as Israel's El Al[11] or Lebanon's Middle East Airlines[12] for nationalist reasons or to aid the country's economy, particularly in the area of tourism.[13]

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.[14] 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.[15]

Near the end of the 20th century, many of these airlines have been corporatized as a public company or a state-owned enterprise, while others have been completely privatized.[16] The aviation industry has also been gradually deregulated and liberalized,[17] permitting greater freedoms of the air particularly in the United States and in the European Union with the signing of the Open Skies agreement.[18] One of the features of such agreements is the right of a country to designate multiple airlines to serve international routes with the result that there is no single "flag carrier".[19]

List of flag-carrying airlines

[edit]

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.

Country or Region Airline Details of current state ownership Details of former state ownership
 Afghanistan Ariana Afghan Airlines[20] State-owned[21]
 Albania Air Albania[22] Minority state-owned by Albcontrol (10%)[23]
 Algeria Air Algérie[24] State-owned[25]
 Angola TAAG Angola Airlines[26] Majority[27]
 Argentina Aerolíneas Argentinas[28] State-owned[28]
 Aruba Aruba Airlines[29] None
 Australia Qantas[30] None State-owned until 1992.[31]
 Austria Austrian Airlines[32] None – owned by Lufthansa State-owned until 5 December 2008.[33]
 Azerbaijan Azerbaijan Airlines[34] State-owned[35]
 Bahamas Bahamasair[36] State-owned[37]
 Bahrain Gulf Air[38] State-owned[39]
 Bangladesh Biman Bangladesh Airlines[40] Public limited company State-owned until 23 July 2007.
 Belarus Belavia[41] State-owned[42]
 Belgium Brussels Airlines[43] None – owned by Lufthansa[44] State-owned in its original incarnation (SN Brussels Airlines).
 Bhutan Druk Air[45] None
 Bolivia Boliviana de Aviación[46] State-owned[47]
 Botswana Air Botswana[48] State-owned[48]
 Brunei Royal Brunei Airlines[49] State-owned[49]
 Bulgaria Bulgaria Air[50] Minority state-owned (0.01%)[51]
 Burkina Faso Air Burkina State-owned[52]
 Cambodia Cambodia Angkor Air[53] Majority (51%)[54]
 Cameroon Camair-Co[55] State-owned[56]
 Canada Air Canada[57] Minority state-owned by the Government of Canada (Estimated 6.4%)[58] State-owned until privatization in 1989.[59]
 Cape Verde TACV[60] Majority (90%)[61]
 Cayman Islands Cayman Airways State-owned [62]
 Chile LATAM Chile[63][64] None State-owned until September 1989.[65]
 China Air China[66] Majority (51.7%): 40.98% through CNAHC and 10.72% through CNACG[67]: 10  State-owned until 2004.[68]
 Colombia Avianca[69] None
 Costa Rica Avianca Costa Rica[70]
 Croatia Croatia Airlines[71] Majority (98%)[72]
 Cuba Cubana de Aviación[73] State-owned[74]
 Cyprus Cyprus Airways[75] None - 40% owned by Malta-based SJC Group[76]
 DR Congo Congo Airways[77] State-owned[77]
 Denmark Scandinavian Airlines[78] Joint venture[nb 1]  
 Norway
 Sweden
 Djibouti Air Djibouti[81] Joint venture
 Dominican Republic Arajet[82] None
 Egypt Egyptair[83] State-owned[84]
 Equatorial Guinea CEIBA Intercontinental[85] State-owned[86]
 Eritrea Eritrean Airlines State-owned
 Eswatini Eswatini Air[87]
 Ethiopia Ethiopian Airlines[88] State-owned[89]
 Faroe Islands Atlantic Airways[90]
 Fiji Fiji Airways[91] Majority (51%)[92]
 Finland Finnair[93] Majority (55.8%)[94]
 France Air France[95] Minority (18% share)[96]
 French Polynesia Air Tahiti Nui[97] Majority[98]
 Georgia Georgian Airways None
 Germany Lufthansa[99] None State-owned until 1994;[100] remaining government shares were sold in 1997.[101]

Minority (20.05%) in the Lufthansa Group acquired in 2020[102][103] was sold in 2022.[104]

 Greece Aegean Airlines[105]
 Greenland Air Greenland[106] State-Owned[107]
 Guernsey Aurigny[108] State-owned[109]
 Hong Kong Cathay Pacific[110] Minority (6.08% by Hong Kong Government) + 28.17% through Air China Limited[111]
 Iceland Icelandair[112] None - owned by Icelandair Group[113]
 India Air India[114] None - owned by Tata Group[115] State-owned until November 2021.[114][116][117]
 Indonesia Garuda Indonesia[118] Majority (60.54%)[119] State-owned until February 2011.[120]
 Iran Iran Air[121] State-owned[122]
 Iraq Iraqi Airways[123]
 Ireland Aer Lingus[124][125] None – owned by International Airlines Group State-owned until September 2006.[126]
 Israel El Al[127] Minority (~1.1%)[128] State-owned until June 2004.
 Italy ITA Airways[129] State-owned, succeeded Alitalia starting from 15 October 2021[130][131][132]
 Ivory Coast Air Côte d'Ivoire[133] Minority (49%)
 Jamaica Caribbean Airlines[134][135][136] Minority (16%)[137][138][139]
 Trinidad and Tobago Majority (84%)[140]
 Japan Japan Airlines[141] None State-owned until 1987.[142][143]
 Jordan Royal Jordanian[144]
 Kazakhstan Air Astana[145] Majority (51%)[146]
 Kenya Kenya Airways[147] Minority (29.8%)[148]
 Kiribati Air Kiribati[149]
 Kuwait Kuwait Airways[150] State-owned[151]
 Laos Lao Airlines[152] State-owned[153]
 Latvia airBaltic[154] Majority (80.05%)[155]
 Lebanon Middle East Airlines[156] Majority (99%)[156]
 Libya Afriqiyah Airways[157] State-owned[158]
Libyan Airlines[159] State-owned[159]
 Luxembourg Luxair[160] Majority (73.86%)[161]
 Macau Air Macau[162] Minority (5%)
 Madagascar Madagascar Airlines[163] Majority
 Malawi Malawi Airlines[164] Majority (51%)[164]
 Malaysia Malaysia Airlines[165] State-owned through Khazanah Nasional[166]
 Maldives Maldivian
 Malta KM Malta Airlines[167] Majority
 Marshall Islands Air Marshall Islands[168]
 Mauritania Mauritania Airlines[169] State-owned[170]
 Mauritius Air Mauritius[171]  
 Mexico Aeroméxico[172] None State-owned until 2007.
 Mongolia MIAT Mongolian Airlines[173] State-owned[174]
 Montenegro Air Montenegro[175] State-owned[176]
 Morocco Royal Air Maroc[177] State-owned[178]
 Mozambique LAM Mozambique Airlines[179] State-owned[180]
 Myanmar Myanmar National Airlines[181] State-owned[182]
 Nauru Nauru Airlines[183] State-owned[183]
 Nepal Nepal Airlines[184] State-owned
 Netherlands KLM[185] Minority (14%)[186]
 New Caledonia Aircalin Majority (99%)[187]
 New Zealand Air New Zealand[188] Majority (53%)[189] State-owned until 1989, partially re-nationalized in 2001.[190][191][192]
 North Korea Air Koryo[193] State-owned[194]
 Oman Oman Air[195] Majority[196]
 Pakistan Pakistan International Airlines[197] State-owned[198]
 Panama Copa Airlines[199] None
 Papua New Guinea Air Niugini[200]
 Paraguay LATAM Paraguay[201]
 Peru LATAM Perú[202]
 Philippines Philippine Airlines[203]
 Poland LOT Polish Airlines[204] State-owned[205]
 Portugal TAP Air Portugal[206] Majority (72%) [207]
 Qatar Qatar Airways[208] State-owned
 Réunion Air Austral[209]
 Romania TAROM[210] Majority (97.22%)[210]
 Russia Aeroflot[211] Majority (51%)[212]
 Rwanda RwandAir[213] State-owned[213]
 Samoa Samoa Airways[214] State-owned[215]
 São Tomé and Príncipe STP Airways[216] None
 Saudi Arabia Saudia[217] Majority
 Senegal Air Senegal[218]
 Serbia Air Serbia[219] Majority (51%)[220]
 Seychelles Air Seychelles[221] State-owned (100%)[222]
 Solomon Islands Solomon Airlines[223] State-owned[224]
 Singapore Singapore Airlines[225] Majority (54.5% through Temasek Holdings[226])
 South Africa South African Airways[227] State-owned[228]
 South Korea Korean Air[229] None[230] – owned by Hanjin[231] State-owned until 1969.[232][233][234]
 Spain Iberia[235] None – owned by International Airlines Group
 Sri Lanka SriLankan Airlines[236] State-owned[237]
 Sudan Sudan Airways State-owned[238]
 Suriname Surinam Airways[239] State-owned[240]
 Switzerland Swiss International Air Lines[241] None – owned by Lufthansa[242]
 Syria Syrian Air[243] State-owned
 Taiwan China Airlines[244] Majority[245] State-owned until 1991. 51.28% held by non-profit Civic Aviation Development Foundation.[246]
 Timor-Leste Aero Dili[247]
 Tanzania Air Tanzania State-owned
 Thailand Thai Airways International[248] Minority (47.86%)[249]
 Tunisia Tunisair[250] Majority[250]
 Turkey Turkish Airlines[251] Minority (49%)
 Turkmenistan Turkmenistan Airlines[252] State-owned[253]
 Uganda Uganda Airlines[254]
 Ukraine Ukraine International Airlines[255]  
 United Arab Emirates Etihad Airways[256] State-owned by the Government of Abu Dhabi[257][258]
Emirates[259] State-owned by the Government of Dubai through the Investment Corporation of Dubai.[260]
 United Kingdom British Airways[261] None – owned by International Airlines Group State-owned until 1987.[262]
 Uzbekistan Uzbekistan Airways[263] Majority
 Venezuela Conviasa[264]
 Vietnam Vietnam Airlines[265] Majority (86.2%)[265]
 Yemen Yemenia[266] Majority
 Zambia Zambia Airways[267]
 Zimbabwe Air Zimbabwe[268] State-owned[268]

See also

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Notes

[edit]
  1. ^ SAS is partly owned by the governments of Denmark and Sweden, and was partly owned by the government of Norway until June 2018. SAS is the flag carrier for all three nations.[78][79][80]

References

[edit]
  1. ^ Morris, Hugh (17 March 2019). "The slow death of the flag carrier: Could state-owned airlines become a thing of the past?". The Telegraph. Archived from the original on 12 January 2022. Malaysia is the latest nation to see its flag carrier – a label that in times gone by indicated a government-owned airline, and one that embodied a country's national identity – teeter on the brink.
  2. ^ McMurtry, Ian (25 May 2018). "Palestinian Airlines: The Homeless Flag Carrier". AirlineGeeks.com. Retrieved 12 June 2019.
  3. ^ Moores, Victoria (24 May 2019). "Interview: CEO aims to make Virgin Atlantic UK's second flag carrier". atwonline.com. Retrieved 12 June 2019.
  4. ^ "flag carrier definition". Businessdictionary.com. Archived from the original on 23 October 2013. Retrieved 22 May 2009.
  5. ^ "List of U.S. Flag Air Carriers". www.dartmouth.edu. Archived from the original on 6 June 2010. Retrieved 12 June 2019.
  6. ^ "USOcean.com – U.S. Flag Carrier". Retrieved 12 June 2019.
  7. ^ Paul Stephen Dempsey (1991). "Airline Management; Strategies for the 21st Century". Coast Aire Publication. p. 299.
  8. ^ "flag airline definition". [MacMillan Dictionary]. Archived from the original on 7 July 2012. Retrieved 9 December 2012.
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  10. ^ Sampson, Anthony (1984). "Empires of the Sky; The Politics, Contests and Cartels of World Airlines". Hodder and Stoughton.
  11. ^ Sherman, Arnold (1972). "To the Skies: The El Al Story". Bantam Books.
  12. ^ Sampson, Anthony (1984). "Empires of the Sky; The Politics, Contests and Cartels of World Airlines". Hodder and Stoughton. p. 82.
  13. ^ Tim Pat Coogan (2002). "Wherever Green Is Worn: The Story of the Irish Diaspora". Palgrave Macmillan. p. 265.
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  20. ^ "EU To Impose Ban On Afghan Planes". Airwise News. 22 November 2010. Archived from the original on 24 May 2013. Kabul-based Safi is the country's No. 2 airline after national carrier Ariana Afghan Airlines.
  21. ^ De Luce, Dan; Kube, Courtney (8 June 2022). "Biden admin relies on Taliban-controlled airline to help Afghans flee Afghanistan". NBC News. Retrieved 17 March 2023. the Biden administration indirectly purchases plane tickets in bulk from Ariana Afghan Airlines, the country's state-owned airline
  22. ^ Dron, Alan (18 September 2018). "New national carrier for Albania launched". Air Transport World. Archived from the original on 19 September 2018.
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  26. ^ "TAAG Angola Airways boosts capacity, justifying Angola's investment in airport infrastructure". CAPA Centre for Aviation. 22 July 2013. Archived from the original on 6 October 2014. The investment is beginning to pay dividends with flag carrier TAAG Angola Airlines increasing capacity by nearly 40% in the past year. 
  27. ^ Hofmann, Kurt (6 May 2016). "TAAG Angola Airlines' new 777-300ER to fly on Portugal route". Air Transport World. Archived from the original on 6 May 2016. The Angolan government is the majority shareholder in TAAG. 
  28. ^ a b "Argentina: Aerolineas Argentinas faces a tough turnaround with government's new liberal mindset". CAPA Centre for Aviation. 19 September 2016. Archived from the original on 22 September 2016. At the same time, Argentina's state-owned flag carrier Aerolineas Argentinas is attempting to transition to a more commercially minded airline after years of bleeding cash and being propped by the former Argentinian government.
  29. ^ "The World's Shortest International Jet Flight? Aruba Airlines Launches 8-Minute Flight To Punto Fijo". Airways Magazine. 19 May 2018. Retrieved 16 October 2022.
  30. ^ Dron, Alan (1 September 2017). "Brisbane named second Qantas 787-9 base". Air Transport World. Archived from the original on 2 September 2017.
  31. ^ "Accelerating Change in the 1990s". Qantas. 31 March 2002. Archived from the original on 22 January 2014. Retrieved 16 August 2013.
  32. ^ Hofmann, Kurt (8 August 2017). "Austrian Airlines completes Embraer E195 deliveries". Air Transport World. Archived from the original on 8 August 2017.
  33. ^ "AUA-Verkauf besiegelt: Kranich soll Flügel verleihen". Diepresse.com. 31 March 2010. Archived from the original on 16 December 2008. Retrieved 16 August 2013.
  34. ^ "Azerbaijan Airlines AZAL Airline Profile | CAPA". centreforaviation.com. Retrieved 2 June 2024.
  35. ^ Blachly, Linda (17 June 2015). "Bahamasair orders five ATR -600 aircraft". Air Transport World. Archived from the original on 17 June 2015. Bahamasair, the national flag carrier of Bahamas, has placed a firm order for two 70- seat ATR 72-600s and three 50-seat ATR 42-600s. 
  36. ^ "Gov't considers Bahamasair withdrawal from local market". ch-aviation GmbH. 2 June 2017. Archived from the original on 10 September 2023.
  37. ^ Dron, Alan (6 April 2018). "Gulf Air reveals new branding, prepares for first 787". Air Transport World. Archived from the original on 13 April 2018.
  38. ^ "Gulf Air". Mumtalakat. Archived from the original on 9 July 2019. Retrieved 7 December 2019.
  39. ^ Dron, Alan (23 February 2018). "UK restores Bangladesh cargo link, with caveats". Air Transport World. Archived from the original on 2 March 2018. Bangladesh Biman, the national carrier, was the sole airline that handled direct cargo flights to the UK.
  40. ^ Borodina, Polina (26 June 2014). "Belavia orders three Boeing 737-800s". Air Transport World. Archived from the original on 27 June 2014. This is the first direct purchase of Boeing aircraft for the Belarus flag carrier.
  41. ^ "Belarus aims to privatise Belavia in 2013, with Russian carriers the most likely suitors". Centre for Aviation. 10 May 2012. Archived from the original on 12 May 2012.
  42. ^ Moores, Victoria (22 May 2017). "Brussels Airlines to buy seven Airbus A330ceos". Air Transport World. Archived from the original on 22 May 2017. Belgian flag carrier Brussels Airlines has decided to replace seven of its 10 Airbus A330s, but is sticking with A330ceos for its fleet renewal and long-haul expansion.
  43. ^ Moores, Victoria (15 May 2018). "Pilot strike forces Brussels Airlines to cancel 75% of flights". Air Transport World. Archived from the original on 16 May 2018. Lufthansa took full control of Brussels Airlines through its parent SN Airholding in late 2016 and replaced top management Feb. 5, as the group revamps the airline to be more closely integrated with Lufthansa Group's Eurowings low-fare division.
  44. ^ Blachly, Linda (20 April 2018). "Aircraft Briefs-20 April 2018". Air Transport World. Archived from the original on 24 April 2018. Drukair, the flag carrier of Eastern Himalayan Kingdom of Bhutan, has signed a purchase agreement for one Airbus A320neo to support its growth plans and complement its existing fleet of three A319s.
  45. ^ Clark, Oliver (24 April 2016). "ROUTES: Air Nostrum still keen on Latin American growth post-Sol". Kraków: Flightglobal. Archived from the original on 21 August 2016. BoA Regional, a new joint venture in Paraguay with Bolivia's national carrier Boliviana de Aviacion, is "going well" and the airline is busy "developing new routes and working on new traffic rights to Brazil", says Oliver.
  46. ^ "Boliviana de Aviacion set to expand as re-launch of Aerosur is unlikely due to government roadblocks". Centre for Aviation. 30 June 2012. Archived from the original on 9 July 2012. Retrieved 29 June 2012. Even though BoA now has a monopoly on domestic trunk routes, it is unlikely the government owned carrier will abuse its new dominant position.
  47. ^ a b Dron, Alan (3 January 2019). "Air Botswana receives first of two Embraer E170s". Air Transport World. Archived from the original on 8 January 2019.
  48. ^ a b "Royal Brunei Airlines takes another step forward as it becomes first 787 operator in Southeast Asia". Centre for Aviation. 19 June 2013. Archived from the original on 24 June 2013.
  49. ^ "Bulgaria Air strengthens its European network with new E-Jets, but cost reduction is also essential". 4 June 2012. Archived from the original on 18 June 2012. Retrieved 15 June 2012. As the national carrier of Bulgaria, Bulgaria Air is based at Sofia Airport and operates scheduled services, ad hoc charter services and business jet transportation.
  50. ^ "Archived copy". Archived from the original on 23 December 2015. Retrieved 22 December 2015.{{cite web}}: CS1 maint: archived copy as title (link)
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  52. ^ "Cambodia poised for more double-digit growth as Cambodia Angkor Air expands and Qatar Airways enters". Centre for Aviation. 18 January 2013. Archived from the original on 22 January 2013.
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  62. ^ "BOC Aviation to lease one new A320-200 to LAN". Air Transport World. 3 December 2010. Retrieved 14 February 2012. This deal marks the second time that BOC has worked with Chile's flag carrier.
  63. ^ "LATAM Kicks Off Regular Flights, Announces Johannesburg". Airways News. 5 May 2016. Archived from the original on 9 May 2016. Retrieved 11 May 2016.
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  66. ^ "Air China Interim Report 2017" (PDF). Air China. 15 September 2017. Archived from the original (PDF) on 7 October 2017.
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  77. ^ a b "SAS aims to capture a larger share of the thriving Scandinavian leisure market". Centre for Aviation. 27 August 2012. Archived from the original on 22 October 2016.
  78. ^ Moores, Victoria (18 October 2016). "Sweden, Norway sell 7% of SAS Scandinavian Airlines". Air Transport World. Archived from the original on 22 October 2016. This reduces Sweden's stake to 57 million shares, or around 17% of SAS, down from 21%.
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