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A flag carrier is a transportation company, such as an airline or shipping company, that, being locally registered in a given state, 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 a certificated airline rather than a holding company, conglomerate, or multinational private equity firm) may also be known as a national airline or a national carrier, although this can have different legal meanings in some countries.

Background[link]

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 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 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 by government employees 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 the last decade, 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 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. 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 or major airline sized carrier in a country, or in reference to a mainline carrier with a history of a state sponsored legacy of airline service, even long after their privatization.^{[citation needed]}

List of flag-carrying airlines[link]

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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/Region	Airline	Details of current state-ownership	Details of former state-ownership	Notes
Afghanistan	Ariana Afghan Airlines[3]	Majority[4]
Algeria	Air Algérie[5]	Majority (95%)[6]		The company will be privatized between 2012 and 2013.[citation needed]
Angola	TAAG Angola Airlines[7]	State-owned
Argentina	Aerolíneas Argentinas[8]	Majority (99.4%)[9]
Armenia	Armavia
Australia	Qantas[10]	None	State-owned until 1992[11]
Austria	Austrian Airlines	None - owned by Lufthansa
Azerbaijan	Azerbaijan Airlines[citation needed]
Bahamas	Bahamasair	State-owned
Bahrain	Gulf Air
Bangladesh	Biman Bangladesh Airlines[12]	Public limited company	State-owned until 23 July 2007
Belarus	Belavia[13]	State-owned[13]
Belgium	Brussels Airlines[14]	None
Bhutan	Druk Air	None
Bolivia	Boliviana de Aviación	State-owned
Bosnia and Herzegovina	B&H Airlines[15][not in citation given]	Majority (50.93%)	99.93% prior to 2008	Sold 49% to Turkish Airlines in 2008
Botswana	Air Botswana	State-owned
Brunei	Royal Brunei Airlines[16]	State-owned[17]
Bulgaria	Bulgaria Air	Public limited company	State-owned	Majority (59.58%)
Burkina Faso	Air Burkina
Burundi	Air Burundi	State-owned
Cambodia	Cambodia Angkor Air	Majority (51%)[18]
Cameroon	Camair-Co[19]
Canada	Air Canada	None	State-owned until 1989[20]
Cape Verde	TACV
Chad	Toumaï Air Tchad
Chile	LAN Airlines[21]	None
China	Air China[22]	None	State-owned until 2004[23]
Colombia	Avianca[24]	None
Côte d'Ivoire	Air Ivoire	Minority (49%)
Costa Rica	Lacsa	State-owned	Owned by Taca
Croatia	Croatia Airlines	State-owned
Cuba	Cubana de Aviación
Cyprus	Cyprus Airways[25]	Majority (70%)[25]
Czech Republic	Czech Airlines[26]	State-owned
Denmark	Scandinavian Airlines[citation needed]	Joint-Venture[nb 1]
Norway
Sweden
Djibouti	Djibouti Air	Joint venture
Dominican Republic	PAWA Dominicana
Ecuador	TAME[27]	State-owned
Egypt	EgyptAir
Equatorial Guinea	Ecuato Guineana
Eritrea	Eritrean Airlines	State-owned
Estonia	Estonian Air	Estonian government owns 90% and SAS Group 10% [28]
Ethiopia	Ethiopian Airlines	State-owned
Fiji	Air Pacific[29]	Air Pacific is majority owned (51% stake) by the Fijian government.[30][31]
Finland	Finnair	Finnair's major shareholder is the Finnish government with a 55.8 per cent holding [32]
France	Air France[33]	Minority (~20%)[citation needed]
Georgia	Georgian Airways	None
Germany	Lufthansa[34]	None	German Government sold remaining 35,68% in 1997 [35]
Greenland	Air Greenland	Joint venture
Haiti	Tortug' Air
Hong Kong	Cathay Pacific	Cross Holding with Air China 17.5%[36] Air China increased its holding another 12.4% to 29.9% [37]		Endorsed by Brand Hong Kong (trademark owned by Hong Kong SAR)[38]
	Dragonair	Holding by Cathay Pacific in 100%		Endorsed by Brand Hong Kong (trademark owned by Hong Kong SAR)[38]
Iceland	Icelandair[39]
India	Air India[40]	State owned [41][not in citation given]
Indonesia	Garuda Indonesia[42]	Majority
Ireland	Aer Lingus	Irish Government 25.4%[citation needed]
Iran	Iran Air	100% state-owned [43]
Israel	El Al[44]	Holds no controlling stake, though Government of Israel does hold some share	State-owned until June 2004	June 2004: The airline ceases to be a government company – After the purchase of stocks and exercise of options by the public, the State's holdings in the company declined to less than 50% and the airline ceases to be a government company, becoming a mixed company (as defined in the Law of Government Companies).[45]
Italy	Alitalia [46]		State-owned until 2008[citation needed]	Compagnia Aerea Italiana acquired the name, landing rights, many planes and other assets in the liquidation process of the former Alitalia - Linee Aeree Italiane S.p.A. in Extraordinary Administration
Jamaica	Caribbean Airlines d/b/a Air Jamaica
Jordan	Royal Jordanian
Japan	Japan Airlines	None	State-owned until 1987
Kazakhstan	Air Astana[47]	Majority (51%)
Kenya	Kenya Airways[48]	Minority (23%)[48]
Kiribati	Air Kiribati
Kuwait	Kuwait Airways[49]	Majority (65%); 35% to be privatised[49]
Laos	Lao Airlines	State-owned
Libya	Libyan Airlines	None
Latvia	Air Baltic	Majority (99.8%)[50]
Lebanon	Middle East Airlines
Luxembourg	Luxair	Minority (49.96%)
Macau	Air Macau	Minority (5%)
Madagascar	Air Madagascar	Majority
Malawi	Air Malawi	State-owned
Malaysia	Malaysia Airlines[51]
Maldives	Maldivian
Malta	Air Malta	Majority [52]
Mauritania	Mauritania Airlines International
Mauritius	Air Mauritius	None
Mexico	Aeroméxico	None	State-owned until 2007
Moldova	Air Moldova
Mongolia	MIAT Mongolian Airlines	100% [53]
Morocco	Royal Air Maroc[54]	State-owned
Mozambique	LAM Mozambique Airlines[55]	State-owned
Myanmar	Myanma Airways	State-owned
Namibia	Air Namibia	State-owned
Nepal	Nepal Airlines	State-owned
Netherlands	KLM[33]
New Zealand	Air New Zealand[56]	Majority [57]		To be sold down to a 51% stake before 2015. [58]
Nigeria	Air Nigeria[59]	None[59]
North Korea	Air Koryo	State-owned[60]
Oman	Oman Air	State-owned
Pakistan	Pakistan International Airlines[61]
Panama	Copa Airlines	None
Papua New Guinea	Air Niugini
Philippines	Philippine Airlines[62]
Poland	LOT Polish Airlines[63]	Majority (67.97%)[64]
Portugal	TAP Portugal	Full [65]
Qatar	Qatar Airways	State-owned
Réunion	Air Austral[66]
Romania	TAROM	Majority (95%) [67]
Russia	Aeroflot[68]	Majority (51%)
Rwanda	RwandAir
Saint Vincent and the Grenadines	SVG Air
Samoa	Virgin Samoa[69]	Joint-venture, minority (49%)[70]
São Tomé and Príncipe	STP Airways	None
Saudi Arabia	Saudi Arabian Airlines	Majority
Serbia	Jat Airways[71]	State-owned
22x20px Seychelles	Air Seychelles[72]	None
Sierra Leone	Arik Air	None
Singapore	Singapore Airlines	54.5% through Temasek Holdings [73]
Slovenia	Adria Airways
South Africa	South African Airways	State-owned
South Korea	Korean Air[74]	None[75]
South Sudan	Southern Star Airlines
Spain	Iberia	Minority (5%)[76]
Sri Lanka	SriLankan Airlines	State-owned[77]
Sudan	Sudan Airways	State-owned
Swaziland	Swaziland Airlink	Joint venture
Switzerland	Swiss International Airlines
Taiwan	China Airlines[26]			Sold shares to public in 1993[78]
Tajikistan	Tajik Air	State-owned
Tanzania	Air Tanzania	State-owned
Thailand	Thai Airways International	Majority (51%)		Sold shares to public starting in 1991[79]
Trinidad and Tobago	Caribbean Airlines[80]	Majority (84%)		16% owned by the Government of Jamaica[81]
Tunisia	Tunisair	None
Turkey	Turkish Airlines[82]	Minority (49%)
Turkmenistan	Turkmenistan Airlines	State-owned
Uganda	Air Uganda	None
United Arab Emirates	Etihad Airways[83]	State-owned[83]
	Emirates[citation needed]	State-owned
	Air Arabia[citation needed]	Minority (45%)
United Kingdom	British Airways	None	Privatised in 1987 [84]
Ukraine	Ukraine International Airlines
Uruguay	PLUNA[85]
Uzbekistan	Uzbekistan Airways	Majority
Vatican City	Alitalia			Typically the Pope flies on a chartered Alitalia Jet. The Pope's flight actual callsign is "Volo Papale" (English: Papal Flight) followed by a serial number.[86]
Venezuela	Conviasa[citation needed]	State-owned
Vietnam	Vietnam Airlines[87]
Yemen	Yemenia[88]	Majority
Zimbabwe	Air Zimbabwe[89]	Full[90]

See also[link]

Footnotes[link]

Notes[link]

1. ^ SAS is partly owned by the governments of Denmark, Norway and Sweden, and is the flag carrier for all three nations.

References[link]

External links[link]

• International Air Transport Association Organisation formerly responsible for managing air services agreements and international fares.
• US Maritime Administration