Sky Industry News

Founded by United Airlines, Scandinavian Airlines (SAS), Thai Airways International, Air Canada, and Lufthansa, the alliance quickly expanded by adding members like VARIG in South America and All Nippon Airways in Asia-Pacific.

Throughout the 2000s and beyond, the alliance continued growing despite challenges such as Ansett Australia's bankruptcy exit in 2001. New members included Austrian Airlines and Singapore Airlines in 2000; SWISS International Air Lines joined in 2006 along with South African Airways.

The alliance faced setbacks before and after the pandemic when TAM Airlines left due to a merger with LATAM while US Airways merged with American Airlines. Despite these challenges, it added partners like Juneyao Airlines in China.

Lufthansa Group plans to join Star Alliance by acquiring a stake in ITA Airways while SAS is expected to leave for SkyTeam following investments from Air France-KLM.

The Star Alliance's success is attributed to its first-mover advantage over competitors Oneworld (launched in 1999) and SkyTeam (formed in 2000). "According to a breakdown from AeroTime," this head start allowed it early recruitment of key partners globally.

Today there are few markets without major airline alliances; however low-cost carriers dominate developing regions' market shares—highlighting how crucial early membership base-building proved for securing regional partnerships across continents except Australia where coverage gaps remain minimal due largely thanks profit-sharing arrangements joint ventures strengthening ties between member airlines further solidifying position world's largest airline network today