Flag carrier facts for kids
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. 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.
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. 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), and any ship registered in the United States is known as a U.S. flag vessel.
Background
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 as they were the "main national airline" and often a sign of their country's presence abroad.
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 or Lebanon's Middle East Airlines for nationalist reasons or to aid the country's economy, particularly in the area of tourism.
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.
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. The aviation industry has also been gradually deregulated and liberalized, permitting greater freedoms of the air particularly in the United States and in the European Union with the signing of the Open Skies agreement. 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".
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 | State-owned | |
Albania | Air Albania | Minority state-owned by Albcontrol(10%) | |
Algeria | Air Algérie | State-owned | |
Angola | TAAG Angola Airlines | Majority | |
Argentina | Aerolíneas Argentinas | State-owned | |
Armenia | Fly Arna | ||
Aruba | Aruba Airlines | None | |
Australia | Qantas | None | State-owned until 1992. |
Austria | Austrian Airlines | None – owned by Lufthansa | State-owned until 5 December 2008. |
Azerbaijan | Azerbaijan Airlines | ||
Bahamas | Bahamasair | State-owned | |
Bahrain | Gulf Air | State-owned | |
Bangladesh | Biman Bangladesh Airlines | Public limited company | State-owned until 23 July 2007. |
Belarus | Belavia | State-owned | |
Belgium | Brussels Airlines | None – owned by Lufthansa | State-owned in its original incarnation (SN Brussels Airlines) |
Bhutan | Druk Air | None | |
Bolivia | Boliviana de Aviación | State-owned | |
Botswana | Air Botswana | State-owned | |
Brunei | Royal Brunei Airlines | State-owned | |
Bulgaria | Bulgaria Air | Minority state-owned (0.01%) | |
Burkina Faso | Air Burkina | State-owned | |
Cambodia | Cambodia Angkor Air | Majority (51%) | |
Cameroon | Camair-Co | State-owned | |
Canada | Air Canada | Minority state-owned by the Government of Canada (Estimated 6.4%) | State-owned until privatization in 1989. |
Cape Verde | TACV | ||
Cayman Islands | Cayman Airways | State-owned | |
Chile | LATAM Chile | None | State-owned until September 1989. |
China | Air China | Majority (51.7%): 40.98% through CNAHC and 10.72% through CNACG | State-owned until 2004. |
Colombia | Avianca | None | |
Costa Rica | Avianca Costa Rica | ||
Croatia | Croatia Airlines | Majority (98%) | |
Cuba | Cubana de Aviación | State-owned | |
Cyprus | Cyprus Airways | None - 40% owned by Malta-based SJC Group | |
Czech Republic | Czech Airlines | None | |
DR Congo | Congo Airways | State-owned | |
Denmark | Scandinavian Airlines | Joint venture | |
Norway | |||
Sweden | |||
Djibouti | Air Djibouti | Joint venture | |
Dominican Republic | Arajet | None | |
Egypt | Egyptair | State-owned | |
Equatorial Guinea | CEIBA Intercontinental | State-owned | |
Eritrea | Eritrean Airlines | State-owned | |
Swaziland | Eswatini Air | ||
Ethiopia | Ethiopian Airlines | State-owned | |
Atlantic Airways | |||
Fiji | Fiji Airways | Majority (51%) | |
Finland | Finnair | Majority (55.8%) | |
France | Air France | Minority (18% share) | |
French Polynesia | Air Tahiti Nui | Majority | |
Georgia | Georgian Airways | None | |
Germany | Lufthansa | None | State-owned until 1994; remaining government shares were sold in 1997.
Minority (20.05%) in the Lufthansa Group acquired in 2020 was sold in 2022. |
Greece | Aegean Airlines | ||
Greenland | Air Greenland | ||
Guernsey | Aurigny | State-owned | |
Guyana | Caribbean Airlines | None | |
Jamaica | Minority (16%) | ||
Trinidad and Tobago | Majority (84%) | ||
Hong Kong | Cathay Pacific | Minority (6.08% by Hong Kong Government) + 28.17% through Air China Limited | |
Iceland | Icelandair | None - owned by Icelandair Group | |
India | Air India | None - owned by Tata Group | State-owned until November 2021 |
Indonesia | Garuda Indonesia | Majority (60.536%) | State-owned until February 2011. |
Iran | Iran Air | State-owned | |
Iraq | Iraqi Airways | ||
Ireland | Aer Lingus | None – owned by International Airlines Group | State-owned until September 2006. |
Israel | El Al | Minority (~1.1%) | State-owned until June 2004. |
Italy | ITA Airways | State-owned, succeeded Alitalia starting from 15 October 2021 | |
Côte d'Ivoire | Air Côte d'Ivoire | Minority (49%) | |
Japan | Japan Airlines | None | State-owned until 1987. |
Jordan | Royal Jordanian | ||
Kazakhstan | Air Astana | Majority (51%) | |
Kenya | Kenya Airways | Minority (29.8%) | |
Kiribati | Air Kiribati | ||
Kuwait | Kuwait Airways | State-owned | |
Laos | Lao Airlines | State-owned | |
Latvia | airBaltic | Majority (80.05%) | |
Lebanon | Middle East Airlines | Majority (99%) | |
Libya | Afriqiyah Airways | State-owned | |
Libyan Airlines | State-owned | ||
Luxembourg | Luxair | Majority (73.86%) | |
Macau | Air Macau | Minority (5%) | |
Madagascar | Madagascar Airlines | Majority | |
Malawi | Malawi Airlines | Majority (51%) | |
Malaysia | Malaysia Airlines | State-owned through Khazanah Nasional | |
Maldives | Maldivian | ||
Malta | KM Malta Airlines | Majority | |
Marshall Islands | Air Marshall Islands | ||
Mauritania | Mauritania Airlines | State-owned | |
Mauritius | Air Mauritius | ||
Mexico | Aeroméxico | None | State-owned until 2007. |
Mongolia | MIAT Mongolian Airlines | State-owned | |
Montenegro | Air Montenegro | State-owned | |
Morocco | Royal Air Maroc | State-owned | |
Mozambique | LAM Mozambique Airlines | State-owned | |
Myanmar | Myanmar National Airlines | State-owned | |
Nauru | Nauru Airlines | State-owned | |
Nepal | Nepal Airlines | State-owned | |
Netherlands | KLM | Minority (14%) | |
New Caledonia | Aircalin | Majority (99%) | |
New Zealand | Air New Zealand | Majority (53%) | State-owned until 1989, partially re-nationalized in 2001. |
North Korea | Air Koryo | State-owned | |
Oman | Oman Air | Majority | |
Pakistan | Pakistan International Airlines | State-owned | |
Panama | Copa Airlines | None | |
Papua New Guinea | Air Niugini | ||
Paraguay | LATAM Paraguay | ||
Peru | LATAM Perú | ||
Philippines | Philippine Airlines | ||
Poland | LOT Polish Airlines | State-owned | |
Portugal | TAP Air Portugal | Majority (72%) | |
Qatar | Qatar Airways | State-owned | |
Réunion | Air Austral | ||
Romania | TAROM | Majority (97.22%) | |
Russia | Aeroflot | Majority (51%) | |
Rwanda | RwandAir | State-owned | |
Samoa | Samoa Airways | State-owned | |
São Tomé and Príncipe | STP Airways | None | |
Saudi Arabia | Saudia | Majority | |
Senegal | Air Senegal | ||
Serbia | Air Serbia | Majority (51%) | |
Seychelles | Air Seychelles | State-owned (100%) | |
Solomon Islands | Solomon Airlines | State-owned | |
Singapore | Singapore Airlines | Majority (54.5% through Temasek Holdings) | |
South Africa | South African Airways | State-owned | |
South Korea | Korean Air | None – owned by Hanjin | State-owned until 1969. |
Spain | Iberia | None – owned by International Airlines Group | |
Sri Lanka | SriLankan Airlines | State-owned | |
Sudan | Sudan Airways | State-owned | |
Suriname | Surinam Airways | State-owned | |
Switzerland | Swiss International Air Lines | None – owned by Lufthansa | |
Syria | Syrian Air | State-owned | |
Taiwan | China Airlines | Majority | State-owned until 1991. 51.28% held by non-profit Civic Aviation Development Foundation. |
Tajikistan | Tajik Air | State-owned | |
Tanzania | Air Tanzania | State-owned | |
Thailand | Thai Airways International | Minority (47.86%) | |
Tunisia | Tunisair | Majority | |
Turkey | Turkish Airlines | Minority (49%) | |
Turkmenistan | Turkmenistan Airlines | State-owned | |
Uganda | Uganda Airlines | ||
Ukraine | Ukraine International Airlines | ||
United Arab Emirates | Etihad Airways | State-owned by the Government of Abu Dhabi | |
Emirates | State-owned by the Government of Dubai through the Investment Corporation of Dubai. | ||
United Kingdom | British Airways | None – owned by International Airlines Group | State-owned until 1987. |
Uzbekistan | Uzbekistan Airways | Majority | |
Venezuela | Conviasa | ||
Vietnam | Vietnam Airlines | Majority (86.2%) | |
Vanuatu | Air Vanuatu | State-owned | |
Yemen | Yemenia | Majority | |
Zambia | Zambia Airways | ||
Zimbabwe | Air Zimbabwe | State-owned |
See also
In Spanish: Compañía de bandera para niños
- List of charter airlines
- List of low-cost airlines