Flag carrier

A flag carrier is a transportation 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.

This article is about transportation 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).
A Concorde of the United Kingdom flag carrier British Airways

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]

An El Al's Douglas DC-4 in 1948.

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 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]

In the last two decades, however, many of these airlines have since been corporatized as a public company or a state-owned enterprise, or 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
 AfghanistanAriana Afghan Airlines[20]Majority[21]
 AlbaniaAir Albania[22]
 AlgeriaAir Algérie[23]State-owned[24]
 AngolaTAAG Angola Airlines[25]Majority[26]
 ArgentinaAerolíneas Argentinas[27]State-owned[27]
 AustraliaQantas[28]NoneState-owned until 1992.[29]
Virgin Australia[30]None
 AustriaAustrian Airlines[31]None – owned by LufthansaState-owned until 5 December 2008.[32]
 AzerbaijanAzerbaijan Airlines[33]
 BahamasBahamasair[34]State-owned
 BahrainGulf Air[35]State-owned[36]
 BangladeshBiman Bangladesh Airlines[37]Public-limited companyState-owned until 23 July 2007.
 BelarusBelavia[38]State-owned[39]
 BelgiumBrussels Airlines[40]None – owned by Lufthansa[41]Was state-owned in its original incarnation (SN Brussels Airlines)
 BhutanDruk Air[42]None
 BoliviaBoliviana de Aviación[43]State-owned[44]
 BotswanaAir Botswana[45]State-owned[45]
 BruneiRoyal Brunei Airlines[46]State-owned[46]
 BulgariaBulgaria Air[47]Minority State-owned (0.01%)[48]
 Burkina FasoAir Burkina
 CambodiaCambodia Angkor Air[49]Majority (51%)[50]
 CameroonCamair-Co[51]
 CanadaAir Canada[52]NoneState-owned until 1989.[53]
 Cape VerdeTACV[54]
 Cayman IslandsCayman AirwaysState-owned (100%)[55]
 ChadChadian Airlines[56]Majority (51%)[57]
 ChileLATAM Chile[58][59]NoneState-owned until September 1989.[60]
 ChinaAir China[61]Majority (51.7%), in which:[62]
  • 40.98% through CNAHC (100% state-owned)
  • 10.72% through CNACG (100% owned by CNAHC)
 State-owned until 2004, now indirectly controlled through parent companies.[63]
 ColombiaAvianca[64]None
 CroatiaCroatia Airlines[65]Majority (98%)[66]
 CubaCubana de Aviación[67]
 Czech RepublicCzech Airlines[68]None[68]
 DR CongoCongo Airways[69]State-owned[69]
 DenmarkScandinavian Airlines[70]Joint venture[nb 1] 
 Norway
 Sweden
 DjiboutiAir Djibouti[73]Joint venture
 EgyptEgyptAir[74]State-owned[75]
 Equatorial GuineaCEIBA Intercontinental[76]
 EritreaEritrean AirlinesState-owned
 EstoniaNordica[77]State-owned[78]
 EswatiniEswatini AirlinkJoint venture
 EthiopiaEthiopian Airlines[57]State-owned[79]
 Faroe IslandsAtlantic Airways[80]
 FijiFiji Airways[81]Majority (51%)[82]
 FinlandFinnair[83]Majority (55.8%)[84]
 FranceAir France[85]Minority (18% share)[86]
 French PolynesiaAir Tahiti Nui[87]Majority[88]
 GeorgiaGeorgian AirwaysNone
 GermanyLufthansa[89]NoneState-owned until 1994;[90] remaining government shares were sold in 1997.[91]
 GreeceAegean Airlines[92]
 GreenlandAir Greenland[93]
 GuernseyAurigny Air Services[94]State-owned[95]
 GuyanaCaribbean Airlines[96]None
 Hong KongCathay Pacific[97]Minority (6.08% by Hong Kong Government)[98]
Minority (16.03% by Chinese Government)
  • 30% through Air China Limited (53.46% owned by the Chinese Government)[99][100]
 IcelandIcelandair[101]
 IndiaAir India[102]State-owned[102]
 IndonesiaGaruda Indonesia[103]Majority (60.536%)[104]State-owned until February 2011. [105]
 IrelandAer Lingus[106][107]None – owned by IAGState-owned until September 2006.[108]
 IranIran Air[109]State-owned[110]
 IraqIraqi Airways[111]
 IsraelEl Al[112]Minority (~1.1%)[113]State-owned until June 2004.
 ItalyAlitalia[114]Minority (19.48%)[115]State-owned until 2008, and indirectly controlled through a state-owned company since 2013.[116][117]
 Ivory CoastAir Côte d'Ivoire[118]Minority (49%)
 JamaicaCaribbean Airlines[119]Minority (16%)
 JapanJapan Airlines[120]NoneState-owned until 1987.
 JordanRoyal Jordanian[121]
 KazakhstanAir Astana[122]Majority (51%)[123]
 KenyaKenya Airways[124]Minority (29.8%)[125]
 KiribatiAir Kiribati[126]
 KuwaitKuwait Airways[127]State-owned[128]
 LaosLao Airlines[129]State-owned[130]
 LatviaAir Baltic[131]Majority (80.05%)[132]
 LebanonMiddle East Airlines[133]Majority (99%)[133]
 LibyaAfriqiyah Airways[134]State-owned[135]
Libyan Airlines[136]State-owned[136]
 LuxembourgLuxair[137]Majority (73.86%)[138]
 MacauAir Macau[139]Minority (5%)
 MadagascarAir Madagascar[140]Majority
 MalawiMalawian Airlines[141]Majority (51%)[141]
 MalaysiaMalaysia Airlines[142]State-owned (100%) through Khazanah Nasional[143]
 MaldivesMaldivian
 MaltaAir Malta[144]Majority[145]
 MauritaniaMauritania Airlines[146]
 MauritiusAir Mauritius[147] 
 MexicoAeroméxico[148]NoneState-owned until 2007.
 MoldovaAir Moldova[149]
 MongoliaMIAT Mongolian Airlines[150]State-owned[151]
 MontenegroMontenegro Airlines[152]
 MoroccoRoyal Air Maroc[153]State-owned[154]
 MozambiqueLAM Mozambique Airlines[155]State-owned
 MyanmarMyanmar National Airlines[156]State-owned[157]
 NamibiaAir Namibia[158]State-owned (100%)[159]
 NauruNauru Airlines[160]State-owned[160]
   NepalNepal Airlines[161]State-owned
 NetherlandsKLM[162]Minority (14%)[163]
 New ZealandAir New Zealand[164]Majority (53%)[165]State-owned until 1989, partially re-nationalized in 2001.
 North KoreaAir Koryo[166]State-owned[167]
 OmanOman Air[168]Majority[169]
 PakistanPakistan International Airlines[170]State-owned[171]
 PanamaCopa Airlines[172]None
 Papua New GuineaAir Niugini[173]
 PhilippinesPhilippine Airlines[174]
 PolandLOT Polish Airlines[175]State-owned[176]
 PortugalTAP Air Portugal[177]Majority (72%) [178]
 QatarQatar Airways[179]State-owned
 Republic of the CongoEquatorial Congo Airlines[180]Majority (70%)
 RéunionAir Austral[181]
 RomaniaTAROM[182]Majority (95%)[183]
 RussiaAeroflot[184]Majority (51%)[185]
 RwandaRwandAir[186]State-owned[186]
 Saint Vincent and the GrenadinesSVG Air
 SamoaSamoa Airways[187]State-owned[188]
 São Tomé and PríncipeSTP AirwaysNone
 Saudi ArabiaSaudia[189]Majority
 SenegalAir Senegal[190]
 SerbiaAir Serbia[191]Majority (51%)[192]
 SeychellesAir Seychelles[193]None
 Solomon IslandsSolomon Airlines[194]State-owned (100%)[195]
 SingaporeSingapore Airlines[196]Majority (54.5% through Temasek Holdings[197])
 South AfricaSouth African Airways[198]State-owned[199]
 South KoreaKorean Air[200]None[201]State-owned until 1969.[202][203][204]
 SpainIberia[205]Minority (5%)[206]
 Sri LankaSriLankan Airlines[207]State-owned[208]
 SudanSudan AirwaysState-owned[209]
 SurinameSurinam Airways[210]State-owned[211]
  SwitzerlandSwiss International Air Lines[212]None – owned by Lufthansa[213]
 SyriaSyrian Air[214]State-owned
 TaiwanChina Airlines[215]NoneState-owned until 1991. 51.28% held by non-profit Civic Aviation Development Foundation.[216]
 TanzaniaAir TanzaniaState-owned
 ThailandThai Airways International[217]Majority (47.86%)[218]
 Trinidad and TobagoCaribbean Airlines[219]Majority (84%)[220]
 TunisiaTunisair[221]Majority[221]
 TurkeyTurkish Airlines[222]Minority (49%)
 TurkmenistanTurkmenistan Airlines[223]State-owned
 UgandaUganda Airlines[224]
 UkraineUkraine International Airlines[225] 
 United Arab EmiratesEtihad Airways[226]State-owned by the Government of Abu Dhabi[227][228]
Emirates[229]State-owned by the Government of Dubai through the Investment Corporation of Dubai.[230]
 United KingdomBritish Airways[231]NoneState-owned until 1987.[232]
 UzbekistanUzbekistan Airways[233]Majority
 VenezuelaConviasa[234]
 VietnamVietnam Airlines[235]Majority (86.2%)[235]
 VanuatuAir Vanuatu[236]
 YemenYemenia[237]Majority
 ZimbabweAir Zimbabwe[238]State-owned[238]
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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.[70][71][72]

References
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  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.
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  27. "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.
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  37. 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.
  38. "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.
  39. 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.
  40. 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.
  41. Blachly, Linda (20 April 2018). "Aircraft Briefs-20 April 2018". Air Transport World. Archived from the original on 24 April 2018.
  42. 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.
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  44. Dron, Alan (3 January 2019). "Air Botswana receives first of two Embraer E170s". Air Transport World. Archived from the original on 8 January 2019.
  45. "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.
  46. "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.
  47. "Archived copy". Archived from the original on 23 December 2015. Retrieved 22 December 2015.CS1 maint: archived copy as title (link)
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  51. 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. 
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  66. "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.
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  85. 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%...
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  237. "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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