Cooperative cooperation. Competitive cooperation. Confused Airline alliances have travelers scratching their heads over what’’s going on in the skies. Some folks view alliances as a blessing to travelers, offering seamless travel, reduced fares and enhanced frequent-flyer benefits. Others see a conspiracy of big business, causing decreased competition, increased fares and fewer choices. Whatever your opinion, there’’s no escaping airline alliances: the marketing hype is unrelenting, with each of the two mega-groupings, Oneworld and Star Alliance, promoting itself as the best choice for all travelers. And, even if you turn away from their ads, chances are they will figure in any of your travel plans. By the end of the year, Oneworld and Star Alliance will between them control more than 40% of the traffic in the sky. Some pundits predict that figure will be more like 75% in 10 years. But why, after years of often ferocious competition, have airlines decided to band together Let’’s just say the timing is mutually convenient. North American airlines, have exhausted all means of earning customer loyalty at home, have been looking for ways to reach out to foreign flyers. Asian carriers are still hurting from the region-wide economic downturn that began two years ago-just when some of the airlines were taking delivery of new aircraft. Alliances also allow carriers to cut costs and increase profits by pooling manpower resources on the ground and code-sharing—the practice of two partners selling tickets and operating only one aircraft. So alliances are terrific for airlines—but are they good for the passenger Absolutely, say the airlines: think of the lounges, the joint FFP (frequent flyer program) benefits, the round-the-world fares, and the global service networks. Then there’’s the promise of "seamless" travel: the ability to, say, travel from Singapore to Rome to New York, all on one ticket, without having to wait hours for connections or worry about your bags. Sounds Utopian Peter Buecking, Cathay Pacific’’s director of sales and marketing, thinks that seamless travel is still evolving. "It’’s fair to say that these links are only in their infancy. The key to seamlessness rests in infrastructure and information sharing. We’’re working on this." Henry Ma, spokesperson for Star Alliance in Hong Kong, lists some of the other benefits for consumers. "Global travelers have an easier time making connections and planning their itineraries." Ma claims alliances also assure passengers consistent service standards. Critics of alliances say the much-touted benefits to the consumer are mostly pie in the sky, that alliances are all about reducing costs for the airlines, rationalizing services and running joint marketing programs. It is believed that alliances will ultimately result in decreased flight choices and increased costs for consumers. Instead of two airlines competing and each operating a flight on the same route at 70% capacity, the allied pair will share the route and run one full flight. Since fewer seats will be available, passengers will be obliged to pay more for tickets. Those who’’ve already made the elite grade in the FFP of a major airline stand to benefit the most when it joins an alliance: then they enjoy the FFP perks and advantages on any and all of the member carriers. For those who haven’’t made the top grade in any FFP, alliances might be a way of simplifying the earning of frequent flyer miles. For example, I belong to United Airline’’s Mileage Plus and generally fly less than 25, 000 miles a year. But I earn miles with every flight I take on Star Alliance member—All Nippon Airways and Thai Airways. If you fly less than I do, you might be smarter to stay out of the FFP game altogether. Hunt for bargains when booking flights and you might be able to save enough to take that extra trip anyway. The only real benefit infrequent flyers can draw from an alliance is an inexpensive round-the-world fare. The bottom line: for all the marketing hype, alliances aren’’t all things to all people—but everybody can get some benefit out of them. According to paragraph two, setting up airline alliances will chiefly benefit

A. North American airlines and their domestic travelers
B. North American airlines and their foreign counterparts
C. Asian airlines and their foreign travelers
D. Asian airlines and their domestic travelers