Flag carrier

This article is about transport companies having flag-carrier status. For a naval ship which carries the flag, see flagship. For a person who carries the flag, see Flag bearer. For other uses, see Flag carrier (disambiguation).
"National airline" redirects here. For a list of airlines named National, see National Airlines (disambiguation).

A Airbus A380-800 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

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

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]
 Czech Republic Czech Airlines (historical)[77] None[77]
 DR Congo Congo Airways[78] State-owned[78]
 Denmark Scandinavian Airlines[79] Joint venture[nb 1]  
 Norway
 Sweden
 Djibouti Air Djibouti[82] Joint venture
 Dominican Republic Arajet[83] None
 Egypt Egyptair[84] State-owned[85]
 Equatorial Guinea CEIBA Intercontinental[86] State-owned[87]
 Eritrea Eritrean Airlines State-owned
 Eswatini Eswatini Air[88]
 Ethiopia Ethiopian Airlines[89] State-owned[90]
 Faroe Islands Atlantic Airways[91]
 Fiji Fiji Airways[92] Majority (51%)[93]
 Finland Finnair[94] Majority (55.8%)[95]
 France Air France[96] Minority (18% share)[97]
 French Polynesia Air Tahiti Nui[98] Majority[99]
 Georgia Georgian Airways None
 Germany Lufthansa[100] None State-owned until 1994;[101] remaining government shares were sold in 1997.[102]

Minority (20.05%) in the Lufthansa Group acquired in 2020[103][104] was sold in 2022.[105]

 Greece Aegean Airlines[106]
 Greenland Air Greenland[107] State-Owned[108]
 Guernsey Aurigny[109] State-owned[110]
 Hong Kong Cathay Pacific[111] Minority (6.08% by Hong Kong Government) + 28.17% through Air China Limited[112]
 Iceland Icelandair[113] None – owned by Icelandair Group[114]
 India Air India[115] None – owned by Tata Group and Singapore Airlines[116] State-owned until November 2021.[115][117][118]
 Indonesia Garuda Indonesia[119] Majority (60.54%)[120] State-owned until February 2011.[121]
 Iran Iran Air[122] State-owned[123]
 Iraq Iraqi Airways[124]
 Ireland Aer Lingus[125][126] None – owned by International Airlines Group State-owned until September 2006.[127]
 Israel El Al[128] Minority (~1.1%)[129] State-owned until June 2004.
 Italy ITA Airways[130] State-owned, succeeded Alitalia starting from 15 October 2021[131][132][133]
 Ivory Coast Air Côte d'Ivoire[134] Minority (49%)
 Jamaica Caribbean Airlines[135][136][137] Minority (16%)[138][139][140]
 Trinidad and Tobago Majority (84%)[141]
 Japan Japan Airlines[142] None State-owned until 1987.[143][144]
 Jordan Royal Jordanian[145]
 Kazakhstan Air Astana[146] Majority (51%)[147]
 Kenya Kenya Airways[148] Minority (29.8%)[149]
 Kiribati Air Kiribati[150]
 Kuwait Kuwait Airways[151] State-owned[152]
 Laos Lao Airlines[153] State-owned[154]
 Latvia airBaltic[155] Majority (80.05%)[156]
 Lebanon Middle East Airlines[157] Majority (99%)[157]
 Libya Afriqiyah Airways[158] State-owned[159]
Libyan Airlines[160] State-owned[160]
 Luxembourg Luxair[161] Majority (73.86%)[162]
 Macau Air Macau[163] Minority (5%)
 Madagascar Madagascar Airlines[164] Majority
 Malawi Malawi Airlines[165] Majority (51%)[165]
 Malaysia Malaysia Airlines[166] State-owned through Khazanah Nasional[167]
 Maldives Maldivian
 Malta KM Malta Airlines[168] Majority
 Marshall Islands Air Marshall Islands[169]
 Mauritania Mauritania Airlines[170] State-owned[171]
 Mauritius Air Mauritius[172]  
 Mexico Aeroméxico[173] None State-owned until 2007.
 Mongolia MIAT Mongolian Airlines[174] State-owned[175]
 Montenegro Air Montenegro[176] State-owned[177]
 Morocco Royal Air Maroc[178] State-owned[179]
 Mozambique LAM Mozambique Airlines[180] State-owned[181]
 Myanmar Myanmar National Airlines[182] State-owned[183]
 Nauru Nauru Airlines[184] State-owned[184]
 Nepal Nepal Airlines[185] State-owned
 Netherlands KLM[186] Minority (14%)[187]
 New Caledonia Aircalin Majority (99%)[188]
 New Zealand Air New Zealand[189] Majority (53%)[190] State-owned until 1989, partially re-nationalized in 2001.[191][192][193]
 North Korea Air Koryo[194] State-owned[195]
 Oman Oman Air[196] Majority[197]
 Pakistan Pakistan International Airlines[198] State-owned[199]
 Panama Copa Airlines[200] None
 Papua New Guinea Air Niugini[201]
 Paraguay LATAM Paraguay[202]
 Peru LATAM Perú[203]
 Philippines Philippine Airlines[204]
 Poland LOT Polish Airlines[205] State-owned[206]
 Portugal TAP Air Portugal[207] Majority (72%) [208]
 Qatar Qatar Airways[209] State-owned
 Réunion Air Austral[210]
 Romania TAROM[211] Majority (97.22%)[211]
 Russia Aeroflot[212] Majority (51%)[213]
 Rwanda RwandAir[214] State-owned[214]
 Samoa Samoa Airways[215] State-owned[216]
 São Tomé and Príncipe STP Airways[217] None
 Saudi Arabia Saudia[218] Majority
 Senegal Air Senegal[219]
 Serbia Air Serbia[220] Majority (51%)[221]
 Seychelles Air Seychelles[222] State-owned (100%)[223]
 Solomon Islands Solomon Airlines[224] State-owned[225]
 Singapore Singapore Airlines[226] Majority (54.5% through Temasek Holdings[227])
 South Africa South African Airways[228] State-owned[229]
 South Korea Korean Air[230] None[231] – owned by Hanjin[232] State-owned until 1969.[233][234][235]
 Spain Iberia[236] None – owned by International Airlines Group
 Sri Lanka SriLankan Airlines[237] State-owned[238]
 Sudan Sudan Airways State-owned[239]
 Suriname Surinam Airways[240] State-owned[241]
 Switzerland Swiss International Air Lines[242] None – owned by Lufthansa[243]
 Syria Syrian Air[244] State-owned
 Taiwan China Airlines[245] Majority[246] State-owned until 1991. 51.28% held by non-profit Civic Aviation Development Foundation.[247]
 Timor-Leste Aero Dili[248]
 Tanzania Air Tanzania State-owned
 Thailand Thai Airways International[249] Minority (47.86%)[250]
 Tunisia Tunisair[251] Majority[251]
 Turkey Turkish Airlines[252] Minority (49%)
 Turkmenistan Turkmenistan Airlines[253] State-owned[254]
 Uganda Uganda Airlines[255]
 Ukraine Ukraine International Airlines[256]  
 United Arab Emirates Etihad Airways[257] State-owned by the Government of Abu Dhabi[258][259]
Emirates[260] State-owned by the Government of Dubai through the Investment Corporation of Dubai.[261]
 United Kingdom British Airways[262] None – owned by International Airlines Group State-owned until 1987.[263]
 Uzbekistan Uzbekistan Airways[264] Majority
 Venezuela Conviasa[265]
 Vietnam Vietnam Airlines[266] Majority (86.2%)[266]
 Yemen Yemenia[267] Majority
 Zambia Zambia Airways[268]
 Zimbabwe Air Zimbabwe[269] State-owned[269]

See also

Notes

  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.[79][80][81]

References

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  242. ^ "Lufthansa Group Corporate Structure". Lufthansa AG. Archived from the original on 8 September 2014. Retrieved 8 September 2014.
  243. ^ "Syrian Arab Airlines". Archived from the original on 4 December 2013.
  244. ^ Blachly, Linda (6 October 2014). "Taiwan's China Airlines takes delivery of first Boeing 777-300ER". Air Transport World. Archived from the original on 6 October 2014. Taiwanese flag carrier China Airlines has taken delivery of its first of 10 Boeing 777-300ERs. 
  245. ^ "China Airlines". China Aviation Development Foundation. 5 November 2018. Archived from the original on 17 March 2023. Retrieved 17 March 2023. the government of the Republic of China still holds an indirect but majority shareholding. 
  246. ^ 公司治理成效. Archived from the original on 11 February 2013.
  247. ^ "Aero Dili launches flights to Singapore's Changi airport". Aero Dili, the new flag carrier of Timor-Leste, has launched its second international destination.
  248. ^ Montag-Girmes, Polina (16 November 2016). "International airlines increase capacity, frequencies to Russia". Air Transport World. Archived from the original on 17 December 2016. The Thailand flag carrier ceased Moscow operations in March 2015 because of weak demand.
  249. ^ "Thai Airways submits bankruptcy request court says". Yahoo! Finance. 26 May 2020. Retrieved 28 May 2020.
  250. ^ a b "Tunisair's sluggish attitude towards change makes it ill-prepared for Open Skies". Centre for Aviation. 21 August 2012. Archived from the original on 4 October 2012. Retrieved 4 December 2012. As a majority state-owned airline in North Africa, Tunisair has retained most of the flag carrier privileges that are cemented in the 1944 Chicago Convention, but those protectionist practices run counter to the present realities of passengers wanting choice and low fares.
  251. ^ Hofmann, Kurt (12 May 2015). "Turkish Airlines swings to net profit in 1Q". Air Transport World. Archived from the original on 13 May 2015. The Istanbul-based flag carrier flies to 45 domestic and 226 international destinations in 109 countries and operates 274 aircraft, comprising 62 widebody, 202 narrowbody and 10 cargo aircraft. 
  252. ^ Borodina, Polina (26 March 2014). "Turkmenistan Airlines receives first Boeing 777-200LR". Air Transport World. Archived from the original on 26 March 2014. The flag carrier of Turkmenistan operates scheduled flights on 15 routes in 11 European and Asian countries including Frankfurt, London, Moscow, Beijing and Istanbul.
  253. ^ "Turkmenistan Airlines finalises B777-300ER purchase". ch-aviation GmbH. 4 September 2023. Archived from the original on 9 September 2023. The aircraft will be the first B777-300ERs in Turkmenistan Airlines' fleet, although the state-owned carrier already operates four B777-200(LR)s.
  254. ^ Nensel, Mark (18 July 2018). "Revived Uganda flag carrier orders CRJ900s, A330neos". Air Transport World. Archived from the original on 18 July 2018.
  255. ^ "Ukraine International to double international network as Aerosvit restructures". Centre for Aviation. 14 January 2013. Archived from the original on 22 January 2013. While a relatively large country (both in land mass and population – it has about 45 million people), the Ukrainian market (like many other markets in Eastern Europe) cannot easily sustain two large flag carriers, particularly as low-cost competition continues to increase.
  256. ^ Dron, Alan (17 June 2016). "Etihad, Avianca Brasil ink new codeshare". Air Transport World. Archived from the original on 17 June 2016. United Arab Emirates (UAE) flag carrier Etihad Airways has signed a codeshare agreement with Avianca Brasil in the Abu Dhabi-based carrier's latest move to increase its penetration in the South American market. 
  257. ^ "Etihad Holds Roadshows To Finance Aircraft". Airwise News. 23 February 2012. Archived from the original on 24 May 2013.
  258. ^ Shaw-Smith, Peter. "Etihad 'Slightly Ahead' in Plan to Return to Profitability". Aviation International News. Retrieved 7 December 2019.
  259. ^ "Etihad Suspends Flights To Damascus". Airwise News. Reuters. 30 August 2012. Archived from the original on 3 September 2012. Retrieved 9 October 2012. The website of the UAE's other flag carrier, Emirates, says flights to Damascus remain operational.
  260. ^ "Emirates and Dnata now under ICD | GulfNews.com". archive.ph. 3 January 2013. Archived from the original on 3 January 2013. Retrieved 7 December 2019.
  261. ^ Flottau, Jens (4 May 2018). "IAG reports strong 1Q as passenger revenues improve". Air Transport World. Archived from the original on 5 May 2018. UK flag carrier British Airways (BA) continued to be the most profitable unit, with a 9.9% operating margin, followed by Iberia (1%).
  262. ^ "Profile: British Airways". BBC News. 20 September 2001. Archived from the original on 1 November 2013. In May the airline reported a sharp rise in profits and revealed that it was making more money from each customer than it has done since it was privatised in 1987.
  263. ^ Montag-Girmes, Polina (31 August 2016). "Uzbekistan Airways takes first Boeing 787". Air Transport World. Archived from the original on 3 September 2016. The flag carrier of the Republic of Uzbekistan has trained 18 pilots and two pilot-instructors for the new aircraft type.
  264. ^ "Conviasa - El Placer de Volar". www.conviasa.aero.
  265. ^ a b Schofield, Adrian (13 April 2018). "Vietnam Airlines continues to dominate international market". Air Transport World. Archived from the original on 19 April 2018.
  266. ^ Dron, Alan (30 March 2015). "Yemenia suspends services". Air Transport World. Archived from the original on 31 March 2015. The Yemen national carrier said it was suspending flight operations "until further notice due to the prevalent unfavorable operational situation and restriction imposed on Yemen airspace". 
  267. ^ "Zambia Airways re-registers its B737". ch-aviation GmbH. 26 October 2023. Archived from the original on 27 October 2023.
  268. ^ a b "flyafrica.com and fastjet give Zimbabwe its first taste of LCCs with local start-up". Centre for Aviation. 2 July 2014. Archived from the original on 2 July 2014. Government-owned flag carrier Air Zimbabwe currently operates only two international routes although it has been trying for some time to resume more international services.
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