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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
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	State-owned
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	Majority (90%)
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 (historical)	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
Eswatini	Eswatini Air
Ethiopia	Ethiopian Airlines	State-owned
Faroe Islands	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	State-Owned
Guernsey	Aurigny	State-owned
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 and Singapore Airlines	State-owned until November 2021.
Indonesia	Garuda Indonesia	Majority (60.54%)	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
Ivory Coast	Air Côte d'Ivoire	Minority (49%)
Jamaica	Caribbean Airlines	Minority (16%)
Trinidad and Tobago		Majority (84%)
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.
Timor-Leste	Aero Dili
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%)
Yemen	Yemenia	Majority
Zambia	Zambia Airways
Zimbabwe	Air Zimbabwe	State-owned

See also

• List of charter airlines
• List of low-cost airlines

Notes

1. SAS is partly owned by the governments of Denmark and Sweden, and was partly owned by the government of Norway until June 2018. SAS is the flag carrier for all three nations.

References

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263. "Profile: British Airways". BBC News. 20 September 2001. Archived from the original on 1 November 2013. In May the airline reported a sharp rise in profits and revealed that it was making more money from each customer than it has done since it was privatised in 1987.
264. Montag-Girmes, Polina (31 August 2016). "Uzbekistan Airways takes first Boeing 787". Air Transport World. Archived from the original on 3 September 2016. The flag carrier of the Republic of Uzbekistan has trained 18 pilots and two pilot-instructors for the new aircraft type.
265. "Conviasa - El Placer de Volar". www.conviasa.aero.
266. ^ Schofield, Adrian (13 April 2018). "Vietnam Airlines continues to dominate international market". Air Transport World. Archived from the original on 19 April 2018.
267. Dron, Alan (30 March 2015). "Yemenia suspends services". Air Transport World. Archived from the original on 31 March 2015. The Yemen national carrier said it was suspending flight operations "until further notice due to the prevalent unfavorable operational situation and restriction imposed on Yemen airspace". 
268. "Zambia Airways re-registers its B737". ch-aviation GmbH. 26 October 2023. Archived from the original on 27 October 2023.
269. ^ "flyafrica.com and fastjet give Zimbabwe its first taste of LCCs with local start-up". Centre for Aviation. 2 July 2014. Archived from the original on 2 July 2014. Government-owned flag carrier Air Zimbabwe currently operates only two international routes although it has been trying for some time to resume more international services.

External links

• International Air Transport Association
• "U.S. Flag Services". US Maritime Administration. Archived from the original on 13 August 2012..

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• Government-owned airlines