A flag carrier refers to a transportation company, such as an airline or shipping company, that is locally registered in a given country. They may be state-run, state-owned or state-designated companies or organisations with preferential rights or privileges accorded by the government. Flag carriers may be known as such due to maritime law requiring all aircraft or ships to display the state flag of the country of their registry.[1]
A flag carrier (if it is an airline) may also be known as a national airline or a national carrier, although this can have different legal meanings in some countries. The United States is the only country in which the official flag carrier tradition is illegal, because of strict antitrust laws, but it has five major international airlines; American Airlines, Delta Air Lines, United Airlines, Continental Airlines, and US Airways; they function in a similar manner and size as other countries' flag carriers.
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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. The heavily regulated aviation industry also meant aviation rights are often negotiated between governments, denying airlines the right to an open market. These bilateral aviation agreements may 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 for nationalist reasons, or to aid the country's economy, particularly in the area of tourism.[citation needed]
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. 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. In the United States, for example, funding for international travel is restricted to "US flag air carriers" under the Fly America Act,[2] however, this coincidental terminology should not be confused with traditional flag carriers.[citation needed]
In recent decades, however, many of these airlines have since been corporatised as a public company or a state-owned enterprise, or completely privatised. The aviation industry has also been gradually deregulated, particularly in the United States and in the European Union. This has rendered the designation of "flag carriers" less important than it was in the past.[citation needed]
The term is also used loosely to refer to any dominant airline in a country, or in reference to legacy state carriers even long after their privatisation.[citation needed]
The chart below lists airlines considered to be a "flag carrier", either by designation as a national airlines either officially or based on history and whether it is state-owned.
A flag carrier is a transportation company, such as an airline or shipping company, that, being locally registered in a given country, enjoys preferential rights or privileges, accorded by the government, for international operations. It may be a state-run, state-owned or private but state-designated company or organization. Flag carriers may be known as such due to maritime law requiring all aircraft or ships to display the state flag of the country of their registry.[1]
A flag carrier (if it is an airline) may also be known as a national airline or a national carrier, although this can have different legal meanings in some countries. The United States is the only country in which the official flag carrier tradition is illegal, due to antitrust laws[citation needed], but it has five major international airlines; American Airlines, Delta Air Lines, United Airlines, Continental Airlines, and US Airways; they function in a similar manner and size as other countries' flag carriers.
Contents |
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. The heavily regulated aviation industry also meant aviation rights are often negotiated between governments, denying airlines the right to an open market. These bilateral aviation agreements may 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 for nationalist reasons, or to aid the country's economy, particularly in the area of tourism.[citation needed]
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. 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. In the United States, for example, funding for international travel is restricted to "US flag air carriers" under the Fly America Act,[2] however, this coincidental terminology should not be confused with traditional flag carriers.[citation needed]
In recent decades, however, many of these airlines have since been corporatized as a public company or a state-owned enterprise, or completely privatized. The aviation industry has also been gradually deregulated, particularly in the United States and in the European Union. This has rendered the designation of "flag carriers" less important than it was in the past.[citation needed]
The term is also used loosely to refer to any dominant airline in a country, or in reference to legacy state carriers even long after their privatization.[citation needed]
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This table may contain original research. Please improve it by verifying the claims made and adding references. Statements consisting only of original research may be removed. More details may be available on the talk page. (January 2008) |
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This section needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (February 2010) |
The chart below lists airlines considered to be a "flag carrier", either by designation as a national airlines either officially or based on history and whether it is state-owned.
A flag carrier is an airline or ship line that is owned by the government of the country it is based in. Sometimes this means that the company has a monopoly on some routes, especially those to other countries. The term may have come about because of laws that all planes and ships have to show the flag of the country they are registered in.[1]
   | International Air Transport Association - International Air Transport Association |
| | Wright State University - The Fly American Act |
| | LOT Corporate Information - LOT - Ownership Structure |
| | Japan Airlines International Co. Ltd. Company Profile - All About the JAL Group - Company Profile Japan Airlines International Co., Ltd. |
| | Japan Airlines Corporation Company Profile - All About the JAL Group - Company Profile Japan Airlines Corporation |
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