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.
Transport company with preferential status
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).
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
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. 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. Most of these 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.
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.[77][78][79]
Henry Ladd Smith (1991). "Airways Abroad; The Story of American World Air Routes". Smithsonian History of Aviation Series.
Sampson, Anthony (1984). "Empires of the Sky; The Politics, Contests and Cartels of World Airlines". Hodder and Stoughton.
Sherman, Arnold (1972). "To the Skies: The El Al Story". Bantam Books.
Sampson, Anthony (1984). "Empires of the Sky; The Politics, Contests and Cartels of World Airlines". Hodder and Stoughton. p.82.
Tim Pat Coogan (2002). "Wherever Green Is Worn: The Story of the Irish Diaspora". Palgrave Macmillan. p.265.
David Warnock-Smith and Peter Morrel (2008). "Air transport liberalisation and traffic growth in tourism-dependent economies: A case-history of some US-Caribbean markets". Journal of Air Transport Management 14. p.230.
R.E.G. Davies (1987). "Rebels and Reformers of the Airways". Airlife England. pp.250–254.
M. Staniland (2003). "Government birds: air transport and the state in Western Europe". Rowman & Littlefield Publishers. p.68.
Tai Hoon Oum and A.J. Taylor (1995). "Emerging Patterns in Intercontinental Air Linkages and Implications for International Route Allocation Policy". Transportation Journal, Vol. 34, No. 4 (SUMMER 1995). pp.5–27.
Mastalerek, Joanna (2006). "The Future of the Open Skies Agreements after the ECJ judgements – Legal and Economic Aspects". GRIN Verlag. p.12.
"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.
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.
"Gulf Air". Mumtalakat. Retrieved 7 December 2019.
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.
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.
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.
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.
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.
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.
Blachly, Linda (31 July 2015). "Aircraft News-31 July 2015". Air Transport World. Archived from the original on 1 August 2015. The Canadian flag carrier took delivery of its first Dreamliner in May 2014 and will receive a total of 29 new 787-9s by 2019, in addition to eight 787-8 aircraft already in operation.
"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.
Kaminski-Morrow, David (7 January 2016). "Air China to take six more 777-300ERs". Flightglobal. Archived from the original on 4 March 2016. Chinese flag-carrier Air China has reached an agreement to acquire six Boeing 777-300ERs.
Blachly, Linda (4 January 2017). "Aircraft Briefs-4 Jan. 2017". Air Transport World. Archived from the original on 7 January 2017. Boeing delivered the 500th 787 Dreamliner, a 787-8 to Colombia flag carrier Avianca, during the week of Dec. 22, 2016.
Dron, Alan (30 April 2018). "Croatia again seeks airline partner". Air Transport World. Archived from the original on 30 April 2018. This is the third time in the past five years that the small central European state has tried to find a way of divesting itself of a controlling interest in the national carrier.
"First direct Brazil flight to take off in July". Cuba Standard. 29 June 2013. Archived from the original on 18 January 2018. Flag carrier Cubana de Aviación is resuming direct flights to Brazil with a Havana-São Paulo route on July 10, the tourism ministry said in a press release.
"Congo Airways to make international debut in mid-4Q". ch-aviation GmbH. 5 August 2016. Archived from the original on 3 September 2016. Effective November 1, the state-owned national carrier of the Democratic Republic of Congo (DRC) plans to operate a multiple-weekly service between Kinshasa N'Djili and Johannesburg O.R. Tambo, South Africa using A320-200 equipment.
"Africa's Air Djibouti continues re-fleeting". Air Transport World. 11 August 2016. Archived from the original on 13 August 2016. African flag carrier Air Djibouti has taken delivery of its first Boeing 737 as it prepares to launch commercial operations.
"Egyptair contracts Sabre to help implement transformation plan". Air Transport World. 19 December 2014. Archived from the original on 20 December 2014. The state-owned carrier is initiating a major transformation strategy to increase revenues, develop new revenue streams by June 2016 and improve efficiencies.
Dron, Alan (30 March 2017). "Island carrier Atlantic Airways seeks new revenue stream". Air Transport World. Archived from the original on 31 March 2017. Faroese national carrier Atlantic Airways anticipates a move into the ACMI market as it attempts to offset the effect of new competition on its primary route.
Torr, Jeremy (16 September 2015). "Fiji Airways introduces additional Hong Kong route". Air Transport World. Archived from the original on 17 September 2015. Flag carrier Fiji Airways will increase flight frequencies on its Fiji (Nadi International)-Hong Kong International route from Oct. 25.
Meichtry, Stacy; Landauro, Inti (8 May 2015). "French Government Seeks Shareholder Power at Air France-KLM". The Wall Street Journal. Retrieved 14 August 2015. ...the government announced it had begun raising its stake in Air France-KLM to nearly 18% from 16%...
Kaminski-Morrow, David (4 October 2013). "Lufthansa cuts back A380 order". Flightglobal. London. Archived from the original on 29 June 2014. German flag-carrier Lufthansa appears to have cancelled orders for three Airbus A380s.
Dron, Alan (27 May 2016). "Aegean 1Q losses widen as it invests in capacity". Air Transport World. Archived from the original on 28 May 2016. Greek flag carrier Aegean Airlines recorded a net loss of €21.5 million ($24 million) for 1Q 2016, widened from a €8.3 million net loss for the year-ago quarter.
Blachly, Linda (1 May 2015). "Airline News-1 May 2015". Air Transport World. Archived from the original on 1 May 2015. Air Greenland has joined the European Regions Airline Association (ERA), bringing the number of airlines in membership to 53. The flag carrier of Greenland is the third airline to join ERA this year.
Dron, Alan (6 June 2014). "Icelandair faces indefinite strike action". Air Transport World. Archived from the original on 6 June 2014. The threat of a potentially lengthy strike hung over Iceland’s national airline, Icelandair, on Friday after the company’s mechanics announced plans for industrial action.
Thisdell, Dan (14 August 2015). "Plane paint: Top 10 Indian liveries". London: Flightglobal. Archived from the original on 15 August 2015. With 102 aircraft in service, the state-owned flag carrier is still a big beast, but with just 11 on order it looks set to slip down the fleet size table.
Torr, Jeremy (2 June 2015). "Garuda Indonesia may be forced to change Amsterdam service". Air Transport World. Archived from the original on 5 June 2015. Indonesian flag carrier Garuda Indonesia may be forced to add a stopover to its recently introduced Jakarta-Amsterdam nonstop service as a result of runway certification problems at Soekarno-Hatta International Airport in Jakarta.
BeritaSatu.com (21 February 2011). "Mengapa IPO Garuda buntung?". beritasatu.com (in Indonesian). Retrieved 21 December 2019.
Dron, Alan (10 March 2017). "Iran Air takes first Airbus widebody from major order". Air Transport World. Archived from the original on 10 March 2017. The aircraft was handed over to the Iranian flag carrier at Airbus’s final assembly line site at Toulouse, France on March 10.
Blachly, Linda (13 March 2015). "Aircraft & Engines-13 March 2015". Air Transport World. Archived from the original on 14 March 2015. Israeli flag carrier El Al received its 50th aircraft, a Next-Generation 737-900ER.
Schofield, Adrian (27 April 2018). "JAL reports 17.5% net profit drop on deferred taxes". Air Transport World. Archived from the original on 5 May 2018. The Japan flag carrier expects its net profit to slip to ¥110 billion in the fiscal year through March 2019.
Rivers, Martin (12 March 2013). "Kenya Airways adds flights to Livingstone, Zambia". London: Flightglobal. Archived from the original on 24 March 2013. Livingstone will become the Kenyan flag carrier's second Zambian destination, alongside capital city Lusaka.
Dron, Alan (7 April 2017). "Kuwait Airways prepares for Amadeus switchover". Air Transport World. Archived from the original on 8 April 2017. Kuwaiti national carrier Kuwait Airways is to complete switching over its booking, ticketing and reservations system to the Amadeus Altéa Suite of products within the next six months.
"Kuwait Airways names new CEO". Air Transport World. 16 May 2017. Archived from the original on 17 May 2017. The state-owned carrier, which had been in the doldrums for much of the 1990s and 2000s, is undergoing a major re-fleeting exercise.
Torr, Jeremy (9 January 2015). "Lao Airlines plans route expansion". Air Transport World. Archived from the original on 10 January 2015. Lao Airlines, the national carrier of Laos, will add a new route to its 19-destination network across the landlocked Southeast Asian country.
Dron, Alan (8 November 2015). "Dubai Air Show: airBaltic takes lead on Bombardier CS300". Air Transport World. Archived from the original on 10 November 2015. Latvian national carrier airBaltic will be the launch customer for the CS300 version of Bombardier’s CSeries, the manufacturer announced at the Dubai Air Show Nov. 8.
Rivers, Martin (20 December 2012). "PICTURE: Afriqiyah Airways unveils new livery". London: Flightglobal. Archived from the original on 30 December 2012. Retrieved 20 December 2012. Libyan flag carrier Afriqiyah Airways unveiled its new livery at an event in the Rixos Al Nasr Hotel, Tripoli on 19 December.
"Libya's economy recovers as airlines restore networks post-revolution". Centre for Aviation. 10 December 2012. Archived from the original on 18 February 2013. The country’s two state-owned airlines, Libyan Air and Afriqiyah Airlines, which both suffered extensive damage to aircraft, resumed operations late 2011 and are gradually reestablishing their pre-war networks as aircraft return to service.
"Libyan Airlines Takes Delivery of its First Airbus A330". The Tripoli Post. 29 June 2013. Archived from the original on 20 July 2013. Libya’s national carrier and state-owned Libyan Airlines has taken delivery of its first Airbus A330-200, a 259-seater plane that will be used on the carrier's longer-haul routes.
Torr, Jeremy (27 April 2016). "Mauritius bids for key Asia-Africa transit hub status". Air Transport World. Archived from the original on 30 April 2016. In March 2016, the island’s flag carrier Air Mauritius said it would move its Southeast Asian hub from Kuala Lumpur, Malaysia to Singapore’s Changi.
Blachly, Linda (3 April 2017). "MIAT Mongolian Airlines to lease two Boeing 737 MAXs". Air Transport World. Archived from the original on 13 April 2017. The Mongolian flag carrier is expected to operate the 737 MAX aircraft on existing routes to South Korea, China, Japan, Russia, Germany and future new routes.
Kaminski-Morrow, David (19 April 2011). "Mozambique is latest state to face EU blacklist ban". London: Flightglobal. Archived from the original on 28 July 2013. All carriers from Mozambique, including flag-carrier LAM, are being placed on the European Union's blacklist of airlines, in addition to a pair of Boeing 767s operating for Air Madagascar.
Torr, Jeremy (5 August 2015). "Myanmar Airlines continues fleet upgrade". Air Transport World. Archived from the original on 7 August 2015. Myanmar flag carrier Myanmar National Airlines has taken delivery of the first of six ATR 72-600s as part of a $296 million order for the regional turboprop aircraft.
Hofmann, Kurt (13 May 2016). "KLM expands long-haul network". Air Transport World. Archived from the original on 14 May 2016. The Dutch flag carrier also added a twice-weekly Amsterdam-Salt Lake City service on May 5, becoming 3X-weekly from July 4.
Schofield, Adrian (9 April 2018). "Air New Zealand boosts network to replace Virgin Australia alliance". Air Transport World. Archived from the original on 30 April 2018. The New Zealand flag carrier will launch two new routes to Australia and will add frequencies elsewhere, boosting capacity by 15% in the Australia-New Zealand market.
Morrison, Murdo (28 November 2014). "SOLDIERING ON: 10 veteran airliner types still in service". Flightglobal. London. Flight International. Archived from the original on 30 November 2014. If sightings of the Ilyushin Il-18, a Cold War era Russian large turboprop that first flew in 1957 and had its heyday in the 1960s, are fairly scarce these days – with 11 examples in service – ticking off the one example flown by Air Koryo must rank high on any planespotter’s wishlist. North Korean travel agencies offer trips to enthusiasts to fly on aircraft belonging to the flag-carrier, described by one unkind journalist as the "world’s only one-star airline".
"Oman Air reports record passengers, but also record losses". Centre for Aviation. 19 April 2012. Archived from the original on 4 October 2012. Retrieved 25 September 2012. Since the Oman Government took majority ownership in early 2007, the airline has lost a staggering OMR295 million (USD766.9 million).
Blachly, Linda (25 April 2018). "Aircraft, Engine & Leasing Briefs-25 April 2018". Air Transport World. Archived from the original on 29 April 2018. Avmax leased one Bombardier Dash 8-Q315 to Air Niugini, the National Airline of Papua New Guinea.
Torr, Jeremy (11 August 2015). "Philippine Airlines to open new LAX service". Air Transport World. Archived from the original on 15 August 2015. Filipino flag carrier Philippine Airlines (PAL) plans to launch Cebu-Los Angeles (LAX) service from March 2016.
Moores, Victoria (20 December 2017). "First seats from Boeing partner LIFT enter service". Air Transport World. Archived from the original on 2 January 2018. LOT Polish Airlines has become the launch customer for aircraft seating newcomer LIFT by EnCore, with the company’s first product entering service on the Polish flag carrier’s Boeing 737 MAXs.
Kaminski-Morrow, David (15 January 2015). "Aeroflot commits to another 20 Superjets". Flightglobal. London. Archived from the original on 15 January 2015. Russian flag-carrier Aeroflot has agreed to take another 20 Sukhoi Superjet 100s, under a tentative agreement with the airframer.
Schofield, Adrian (14 November 2017). "Samoan government says state airline must be self-sufficient". Air Transport World. The government of Samoa said the South Pacific country's state-owned airline must remain financially self-sufficient, as it relaunches international services. Samoa Airways began scheduled services with a flight to Auckland, New Zealand, on Nov. 14, and also will offer service to Australia.
Blachly, Linda (20 June 2017). "Air Senegal signs for two ATR 72-600s". Air Transport World. Archived from the original on 24 June 2017. Air Senegal, the new Senegalese national airline, has signed a firm contract for two ATR 72-600s at the Paris Air Show.
Dron, Alan (5 May 2016). "Air Serbia's 2015 net profit up 44%". Air Transport World. Archived from the original on 6 May 2016. The Serbia flag carrier said the full-year results were achieved on the back of "significant growth" in passenger numbers, which increased 11% to 2.55 million year-over-year (YOY).
Torr, Jeremy (9 June 2016). "Solomon Airlines to resume services following grounding". Air Transport World. Archived from the original on 12 June 2016. Pacific island flag carrier Solomon Airlines will resume services following a grounding of its fleet over a payment dispute with its main funding partner, the Solomon Islands government.
"Sudan Dreams Big With New Airports". Airwise News. Reuters. 31 October 2012. Archived from the original on 6 November 2012. Retrieved 6 December 2012. State-owned carrier Sudan Airways, known for its delays, has lost out to new carriers offering better service.
Pilling, Mark (24 December 2008). "Putting Surinam on the map". Flightglobal.com. Airline Business. Archived from the original on 9 October 2012. Retrieved 21 July 2012. The country’s flag carrier is Surinam Airways, a small airline with ambitions to carve out a profitable niche connecting this former Dutch colony with the world.
Kuipers, Ank (20 July 2012). "Suriname state oil company considers share offering". Reuters. Archived from the original on 1 November 2013. Retrieved 21 July 2012. Suriname is also considering selling shares in telecommunications firm Telesur and Surinam Airways, which are state owned, and bank Hakrinbank, which is partly owned by the government.
"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.
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.
"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.
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.
"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.
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%).
"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.
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.
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".
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