Airlines Strategy
EVA Air and Southwest Airlines Launch Strategic Interline Partnership 2025
EVA Air and Southwest Airlines partner in 2025 to connect Asia and US with seamless bookings and baggage through four major gateways.
The launch of a strategic interline partnership between EVA Air and Southwest Airlines in August 2025 marks a pivotal moment in trans-Pacific aviation. This collaboration connects Asia and North America through four major U.S. gateway cities, offering travelers integrated booking, through-checked baggage, and coordinated services. By leveraging each airline’s network strengths, the partnership aims to enhance passenger convenience and expand market reach for both carriers.
For Southwest Airlines, this move represents a significant step toward international connectivity without operating long-haul flights directly, while for EVA Air, it provides access to a vast domestic U.S. network. The timing is notable, aligning with a resurgence in Taiwan-U.S. travel demand and EVA Air’s expansion in the American market. The partnership reflects industry trends where airlines collaborate to increase competitiveness and respond to evolving passenger needs.
As the aviation industry recovers from pandemic-related disruptions, such alliances are increasingly important. This article examines the structure, strategic context, financial foundations, and broader implications of the EVA Air–Southwest Airlines partnership, providing a comprehensive analysis of its significance for the airlines and the sector at large.
The EVA Air–Southwest Airlines interline agreement is structured around four key U.S. gateway Airports: Los Angeles (LAX), San Francisco (SFO), Seattle-Tacoma (SEA), and Chicago O’Hare (ORD). These locations were selected to maximize connectivity between EVA Air’s trans-Pacific flights and Southwest’s extensive domestic network, facilitating smooth transfers for passengers traveling between Asia and destinations throughout the United States.
Operationally, the partnership enables passengers to book a single itinerary that includes flights on both airlines, with all boarding passes issued at the initial departure point. Baggage is checked through to the final destination, reducing the complexities often associated with international connections. Bookings are available via EVA Air’s website and major travel agencies, reflecting EVA Air’s established international booking infrastructure and Southwest’s domestic strengths.
EVA Air operates 89 weekly flights to North America, a number set to increase to 94 by the end of 2025. This frequency, combined with Southwest’s domestic reach, creates substantial value for travelers seeking seamless connections between Asia and secondary U.S. cities. The partnership’s immediate implementation demonstrates both airlines’ agility in capitalizing on market opportunities and their commitment to improving the passenger experience.
“This partnership eliminates many traditional friction points for travelers, offering unified ticketing and baggage handling across two major networks.”
Southwest Airlines’ move toward international Partnerships marks a significant departure from its traditional domestic focus. The EVA Air alliance is Southwest’s third international partnership, following agreements with Icelandair and China Airlines. This strategy allows Southwest to expand its global footprint without the financial and operational complexities of launching its own long-haul services.
Under CEO Bob Jordan, Southwest has prioritized rapid partnership development, aiming to provide more choices and greater flexibility for its customers. Jordan has indicated that the airline will continue to pursue new alliances, reflecting a broader transformation in response to competitive pressures and changing consumer expectations for international connectivity. For EVA Air, the partnership aligns with its strategy to strengthen its North American presence. As Taiwan’s second-largest airline and a member of Star Alliance, EVA Air brings a reputation for service quality and operational reliability. The partnership with Southwest complements EVA Air’s network by opening access to over 30 additional U.S. destinations, particularly valuable for business, leisure, and diaspora travelers.
EVA Air’s financial performance has been robust, with trailing twelve-month revenue reaching $7.08 billion in 2025, up from $6.86 billion in 2024. This growth signals a strong recovery from the pandemic and effective market positioning. Southwest Airlines, meanwhile, reported $27.47 billion in revenue for the same period. Although Southwest’s revenue saw a slight year-over-year decline, its scale and market presence provide a stable foundation for the partnership.
The two airlines operate in largely complementary markets, minimizing direct competition and maximizing network synergies. Taiwan is the 18th largest source of visitors to the United States, with 124,293 Taiwanese travelers visiting in the first four months of 2025. This represents a 12.3% increase in tourism compared to the previous year. American tourism to Taiwan is also rebounding, with arrivals reaching 93% of pre-pandemic levels by August 2025.
EVA Air’s dominance in North American routes among Taiwanese carriers, combined with Southwest’s coverage of over 100 U.S. cities, positions the partnership to capture a significant share of the growing trans-Pacific travel market. The collaboration is particularly well-suited to serve the needs of business travelers, leisure tourists, and the visiting friends and relatives (VFR) segment.
“Taiwanese visitor numbers to the U.S. reached 398,813 in 2024, about 80% of pre-pandemic levels, highlighting strong recovery and pent-up demand.”
The Taiwan-U.S. travel corridor is characterized by robust demand across business, leisure, and VFR segments. Taiwanese travelers often begin their U.S. visits in West Coast cities before exploring other regions, a pattern that aligns with the partnership’s gateway strategy. Shopping, sightseeing, and fine dining are popular activities, supporting the need for flexible itineraries and access to diverse destinations.
American tourism to Taiwan is also on the rise, driven by business interests, cultural exploration, and educational exchanges. The recovery in both directions is supported by regulatory developments that have expanded bilateral air services and facilitated greater airline cooperation. The partnership’s ability to offer seamless connections to secondary and tertiary U.S. markets is particularly valuable for VFR travelers and those seeking specialized tourism experiences.
Seasonal fluctuations in demand, with peaks during summer and major holidays, are addressed by EVA Air’s planned frequency increases and Southwest’s flexible scheduling. The partnership enables both airlines to optimize capacity and respond to shifting market conditions, enhancing their competitiveness in a dynamic travel landscape.
The EVA Air–Southwest partnership exemplifies a shift away from traditional alliance models toward more flexible, cross-alliance collaborations. EVA Air’s Star Alliance membership does not preclude this agreement, signaling increased openness to innovative partnership structures across the industry. This trend is likely to influence how airlines approach international expansion and network optimization in the future. Legacy carriers such as United, American, and Delta now face competition from this new alliance, which offers routing options that may be more convenient or cost-effective for certain travelers. The partnership’s impact is particularly pronounced in the low-cost long-haul segment, where Southwest can now compete for international traffic without investing in widebody aircraft or direct long-haul service.
Other Taiwanese carriers, including China Airlines and Starlux Airlines, are also affected by this development. While China Airlines has a similar partnership with Southwest, EVA Air’s greater frequency and North American network may give it a competitive edge. The partnership’s success could prompt further consolidation and innovation in the Asia-Pacific aviation market.
Delivering seamless customer experiences across two distinct airlines requires significant technological integration. The partnership’s unified booking system enables customers to purchase combined itineraries through EVA Air’s website and major travel agencies, with real-time inventory sharing and coordinated fare calculation.
Passengers benefit from receiving all boarding passes at check-in and having their baggage checked through to the final destination. This level of integration requires advanced baggage tracking, coordinated ground handling, and shared customer service protocols. Disruption management and customer assistance are also coordinated to ensure a consistent experience, even during irregular operations.
Future enhancements may include integration of frequent flyer programs, allowing passengers to earn and redeem rewards on partner flights. This would further strengthen customer loyalty and differentiate the partnership in a competitive market. Ongoing investment in digital platforms and mobile services will be essential to maintaining high service standards and meeting evolving passenger expectations.
“Southwest CEO Bob Jordan has indicated that Rapid Rewards earning and redemption on partner bookings will be available ‘in the not-too-distant future.’”
The EVA Air–Southwest Airlines interline partnership is a transformative development in trans-Pacific aviation, offering seamless connectivity between Asia and North America through a combination of network strengths, operational integration, and technological innovation. For Southwest, it provides a cost-effective entry into international markets, while EVA Air gains unprecedented access to the U.S. domestic market.
As travel demand between Taiwan and the United States continues to recover, the partnership is well-positioned to capture significant market share and set new standards for airline collaboration. Its success may influence future alliance structures and encourage other carriers to pursue similar strategies, ultimately benefiting travelers with more choices and greater convenience.
What is an interline partnership? Which cities are included in the EVA Air–Southwest Airlines partnership? Can passengers earn frequent flyer miles on both airlines? How does the partnership benefit travelers? What are the broader implications for the airline industry? Sources: Yahoo Finance, EVA Air News Releases, Southwest Airlines
Introduction
Partnership Structure and Operational Framework
Strategic Background and Airline Evolution
Financial Performance and Market Analysis
Tourism and Travel Market Dynamics
Industry Implications and Competitive Landscape
Technological Integration and Customer Experience
Conclusion
FAQ
An interline partnership allows two airlines to coordinate ticketing, baggage handling, and scheduling, enabling passengers to book connecting flights on a single itinerary with seamless transfers.
The partnership covers Los Angeles (LAX), San Francisco (SFO), Seattle-Tacoma (SEA), and Chicago O’Hare (ORD) as gateway cities for connecting flights between Asia and the U.S.
While full integration is not yet available, Southwest CEO Bob Jordan has stated that Rapid Rewards earning and redemption on partner bookings will be introduced in the near future.
Travelers can book a single itinerary for international and domestic segments, receive all boarding passes at the start of their journey, and have their baggage checked through to the final destination, simplifying the travel experience.
The partnership signals a trend toward more flexible, cross-alliance collaborations, enabling airlines to expand their networks and enhance competitiveness without significant capital investment.
Photo Credit:
Airlines Strategy
Singapore Airlines and Malaysia Airlines Formalize Joint Business Partnership
Singapore Airlines and Malaysia Airlines formalize a strategic partnership to coordinate flights, share revenue, and expand codeshares on the Singapore-Malaysia corridor.
This article is based on an official press release from Singapore Airlines.
On January 29, 2026, Singapore Airlines (SIA) and Malaysia Airlines Berhad (MAB) officially formalized a strategic Joint Business Partnerships (JBP). The agreement marks a significant milestone in Southeast Asian Airlines, following the receipt of final Regulations approvals from the Civil Aviation Authority of Malaysia (CAAM) earlier this month and the Competition and Consumer Commission of Singapore (CCCS) in July 2025.
According to the joint announcement, the partnership allows the two national carriers to coordinate flight schedules, share revenue, and offer joint fare products. This move is designed to deepen cooperation on the high-traffic Singapore-Malaysia air corridor and expand connectivity for passengers traveling between the two nations and beyond.
The formalized agreement enables SIA and MAB to operate more closely than ever before. Key components of the partnership include revenue sharing on flights between Singapore and Malaysia and the alignment of flight schedules to provide customers with more convenient departure times. The airlines also plan to introduce joint corporate travel programs to better serve business clients operating in both markets.
A central feature of the JBP is the expansion of codeshare arrangements. Under the new terms, Singapore Airlines will expand its codeshare operations to include 16 domestic destinations within Malaysia, such as Kota Kinabalu, Kuching, Penang, and Langkawi. Conversely, Malaysia Airlines will progressively codeshare on SIA flights to key international markets, including Europe and South Africa.
Goh Choon Phong, Chief Executive Officer of Singapore Airlines, emphasized the mutual benefits of the agreement in a statement:
“Our win-win collaboration strengthens both carriers’ operations, while delivering enhanced value to customers across our combined networks. This also reinforces the long-standing and deep people-to-people and trade links between Singapore and Malaysia, supporting economic growth and connectivity that will benefit both nations.”
The path to this partnership began in October 2019 but faced delays due to the global pandemic and necessary regulatory scrutiny. The Competition and Consumer Commission of Singapore (CCCS) conducted a thorough review, raising initial concerns regarding competition on the Singapore-Kuala Lumpur (SIN-KUL) route, one of the busiest international air corridors globally.
To secure approval, the airlines committed to maintaining pre-pandemic capacity levels on the route. Additionally, the partnership explicitly excludes the groups’ low-cost subsidiaries, Scoot (SIA Group) and Firefly (Malaysia Aviation Group). This exclusion was a critical revision submitted to regulators to ensure fair competition in the budget travel segment. Datuk Captain Izham Ismail, Group Managing Director of Malaysia Aviation Group, highlighted the strategic importance of the deal:
“This collaboration brings together complementary frequencies and aligned schedules, enabling deeper connectivity between Malaysia and Singapore. Over time, it reinforces MAB’s competitive position by enhancing scale, relevance, and network resilience across key markets.”
Consolidation in a High-Volume Corridor
The formalization of this JBP effectively allows Singapore Airlines and Malaysia Airlines to operate as a single entity regarding scheduling and pricing on the full-service Singapore-Kuala Lumpur route. By coordinating schedules, the carriers can avoid wingtip-to-wingtip flying (flights departing at the exact same time), thereby optimizing fleet utilization and offering a “shuttle-like” frequency for business travelers.
While this strengthens the full-service proposition against low-cost competitors like AirAsia, the regulatory exclusion of Scoot and Firefly is a vital safeguard for consumers. It ensures that price-sensitive travelers retain access to competitive fares driven by the budget sector, while the JBP focuses on premium and connecting traffic.
When does the partnership officially begin? Will this affect frequent flyer programs? Are budget airlines included in this deal?
Singapore Airlines and Malaysia Airlines Formalize Strategic Joint Business Partnership
Scope of the Partnership
Expanded Connectivity and Codeshares
Regulatory Journey and Exclusions
AirPro News Analysis
Frequently Asked Questions
The partnership was formally launched on January 29, 2026, following the final regulatory approval from the Civil Aviation Authority of Malaysia.
Yes. While reciprocal benefits for earning and redeeming miles were enhanced in 2024, the JBP is expected to deepen integration, offering better recognition for elite status holders and improved lounge access across both networks.
No. The low-cost subsidiaries Scoot and Firefly are excluded from this joint business arrangement to comply with regulatory requirements and preserve competition.
Sources
Photo Credit: Montage
Airlines Strategy
Qantas to Exit Jetstar Japan Stake and Rebrand by 2027
Qantas will sell its 33.32% stake in Jetstar Japan to a consortium led by the Development Bank of Japan, ending its Asian LCC venture by mid-2027.
This article summarizes reporting by Reuters.
The Qantas Group has announced it will divest its remaining 33.32% shareholding in Jetstar Japan, selling the stake to a consortium led by the Development Bank of Japan (DBJ). The move, confirmed on February 3, 2026, signals the Australian carrier’s complete departure from the Asian low-cost carrier (LCC) joint venture model.
According to reporting by Reuters, the transaction is expected to conclude by mid-2027, subject to regulatory approvals. While the Airlines will continue operations, it will undergo a comprehensive rebranding, removing the “Jetstar” name from the Japanese domestic market. This decision follows the closure of Qantas’s Singapore-based subsidiary, Jetstar Asia, in July 2025, effectively ending the group’s pan-Asian budget airline strategy.
Under the new agreement, the Development Bank of Japan will enter as a major shareholder, while Japan Airlines (JAL) will retain its controlling 50% stake. Tokyo Century Corporation will also hold its position with a 16.7% share.
Qantas has stated that the financial impact of the sale will be immaterial to its earnings. The primary objective appears to be a strategic realignment rather than an immediate cash injection. The airline’s current flight schedules, routes, and staffing at its Narita Airport base will remain unaffected in the immediate term.
Consumers can expect significant changes to the airline’s visual identity. According to market data, a new brand name is expected to be announced in October 2026, with the full transition away from the Jetstar livery completed by mid-2027. Until then, the carrier will continue to operate under its current name.
The divestment allows Qantas to redirect capital toward its core domestic operations and its ambitious “Project Sunrise” ultra-long-haul international flights. In an official statement regarding the sale, Qantas Group CEO Vanessa Hudson emphasized the shift in focus.
“We’re incredibly proud of the pioneering role Jetstar Japan has played… This transaction allows us to focus our capital on our core Australian operations while leaving the airline in strong local hands.”
Vanessa Hudson, Qantas Group CEO
For Japan Airlines and the DBJ, the move represents a “nationalization” of the carrier’s ownership structure. By transitioning to a Japanese capital-led model, the stakeholders aim to better capture the country’s booming inbound tourism market without the complexities of a cross-border joint venture.
“We will respond flexibly to market changes and maximize synergies with the JAL Group to achieve sustainable growth.”
Mitsuko Tottori, JAL Group CEO
The exit from Jetstar Japan marks the final chapter in Qantas’s retreat from its once-ambitious Asian expansion strategy. For over a decade, the “Jetstar” brand attempted to replicate its Australian success across Asia. However, the closure of Jetstar Asia in Singapore in 2025 demonstrated the difficulties of maintaining margins in a fragmented market saturated by competitors like Scoot and AirAsia.
By selling its stake in Jetstar Japan now, Qantas appears to be executing a disciplined retreat. Rather than continuing to battle high fuel costs and intense regional competition from rivals such as ANA’s Peach Aviation, the Australian group is consolidating its resources where it holds the strongest competitive advantage: its home market and direct international connections.
Despite the ownership change, operational ties between the carriers will not be entirely severed. Qantas and Japan Airlines will maintain their codeshare relationship, and Qantas and Jetstar Airways (Australia) will continue to operate their own aircraft between Australia and Japan. The sale strictly concerns the Japanese domestic joint venture entity.
Masakazu Tanaka, CEO of Jetstar Japan, expressed optimism about the transition in a statement:
“As we look to the next chapter… I am pleased to work with the new ownership group to lead our LCC into the future.”
Masakazu Tanaka, Jetstar Japan CEO
The airline will continue to compete in the Japanese LCC sector, which is currently seeing consolidation as major groups like JAL and ANA tighten control over their budget subsidiaries.
Qantas to Exit Jetstar Japan Stake; Airline Set for Rebrand
Transaction Details and Ownership Structure
Rebranding Timeline
Strategic Rationale
AirPro News Analysis
Future Operations
Sources
Photo Credit: Montage
Airlines Strategy
ANA Holdings FY2026-2028 Strategy Targets Narita Expansion
ANA Holdings plans 2.7 trillion yen investment focusing on Narita Airport expansion, fleet growth, and cargo integration through 2028.
This article is based on an official press release from ANA Holdings.
On January 30, 2026, ANA Holdings (ANAHD) announced its new Medium-term Corporate Strategy for fiscal years 2026 through 2028. Under the theme “Soaring to New Heights towards 2030,” the group has outlined a roadmap shifting from post-pandemic recovery to a phase of aggressive growth, underpinned by a record 2.7 trillion yen investment plan over the next five years.
The strategy identifies the planned expansion of Narita International Airport in 2029 as a critical business opportunity. According to the company, this infrastructure upgrade will serve as a catalyst for expanding its global footprint. Financially, the group is targeting record-breaking performance, aiming for 250 billion yen in operating income by FY2028 and 310 billion yen by FY2030.
A central pillar of the new strategy is the preparation for the massive infrastructure upgrade at Narita International Airport, scheduled for completion in March 2029. This expansion includes the construction of a new third runway (Runway C) and the extension of Runway B, which is expected to increase the airport’s annual slot capacity from 300,000 to 500,000 movements.
ANAHD views this development as a “once-in-a-generation” opportunity. The group’s network strategy is divided into two distinct phases:
To support this expansion, ANAHD plans to introduce new Boeing 787-9 aircraft starting in August 2026. These aircraft will feature upgraded seats in all classes, a move designed to enhance the airline’s premium appeal in the competitive international market. The total fleet is expected to expand to approximately 330 aircraft, exceeding pre-COVID levels.
Following the acquisition of Nippon Cargo Airlines (NCA) in August 2025, ANAHD is positioning itself as a “combination carrier” powerhouse. The strategy outlines a goal to integrate ANA’s passenger belly-hold capacity with NCA’s large freighter fleet, which includes Boeing 747-8Fs.
“The group aims to realize 30 billion yen in synergies, positioning the group as a global logistics powerhouse.”
, ANA Holdings Press Release
By combining these assets, the group intends to expand its Cargo-Aircraft scale (Available Ton-Kilometers) by 1.3 times, targeting leadership in the Asia-North America and Asia-Europe trade lanes. The group’s low-cost carrier, Peach, is also targeted for 1.3x growth in scale. The strategy emphasizes capturing inbound tourism demand through Kansai International Airport and expanding international medium-haul routes.
The financial roadmap set forth by ANAHD is ambitious. The group aims to achieve an operating margin of 9% by FY2028 and 10% by FY2030. To achieve these figures, the company has committed to a 2.7 trillion yen investment over five years, with 50% allocated to international passenger and cargo growth.
AI is another significant investment area, with 270 billion yen allocated to digital initiatives. The group aims to increase value-added productivity by 30% by FY2030 compared to pre-COVID levels. This includes a focus on “Empowerment of All Employees,” training staff as digital talent to combat Japan’s shrinking workforce.
The strategic distinction between ANA and its primary domestic competitor, Japan Airlines (JAL), is becoming increasingly defined by hub strategy and cargo volume. While both carriers are modernizing fleets and targeting North American traffic, ANA’s explicit “dual-hub” timeline, banking heavily on the 2029 Narita expansion, suggests a long-term volume play that complements its high-yield Haneda operations.
Furthermore, the integration of NCA provides ANA with a diversified revenue stream that acts as a hedge against passenger market volatility. By securing dedicated freighter capacity via NCA, ANA is less reliant on passenger belly space than competitors who lack a dedicated heavy-freighter subsidiary, potentially giving them an edge in the logistics sector.
In response to market demands for capital efficiency, ANAHD has signaled a commitment to Total Shareholder Return (TSR). The policy includes maintaining a dividend payout ratio of approximately 20% and introducing a new interim dividend system starting next fiscal year. The group also noted it would execute flexible share buybacks.
On the Sustainability front, the group reiterated its goal of Net-Zero CO2 emissions by 2050, focusing on operational improvements and the accelerated adoption of SAF.
ANA Holdings Unveils Aggressive FY2026-2028 Strategy Targeting Narita Expansion
Strategic Pivot: The “2029 Catalyst”
Fleet and Product Upgrades
Cargo and LCC Integration
Peach Aviation Growth
Financial Targets and Digital Transformation
AirPro News Analysis
Shareholder Returns and Sustainability
Frequently Asked Questions
Sources
Photo Credit: Luxury Travel
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