Star Alliance CEO: Our Goal Is to Make 25 Airlines Feel Like One Seamless Journey

When Theo Panagiotoulias stepped into the top job at Star Alliance in June 2023, the world’s largest airline alliance wasn’t short on reach. With 25 member airlines representing 25 countries across six continents, the alliance touches nearly 30 percent of global air travelers—a staggering figure in an industry built on connectivity. What it needed, however, was something less tangible and far more elusive: harmony.

As aviation’s original alliance, Star Alliance shaped the very model that competitors like Oneworld and SkyTeam would follow. Founded in 1997, it pioneered the concept of global airline partnerships. “My clear direction from the start,” Panagiotoulias tells Business Traveler on the sidelines of the 81st IATA Annual General Meeting in Delhi, “was to focus on the customer experience.” And that, he insists, starts by understanding where it falls short.

A Four-Part Strategy for the Passenger Journey

Rather than launching broad-sweeping initiatives, Panagiotoulias and his team broke down the passenger journey into four areas: booking, airport, connection, and loyalty. “We look for pain points along those parts of the journey and focus on them,” he explains. “We’ve got the network right. Our primary focus is to make it as effortless and seamless as possible from a customer experience perspective.”

This structured approach is now driving Star Alliance’s strategy forward, helping to prioritize improvements where passengers notice them most.

Photo: Star Alliance livery. Courtesy of Chris Leipelt / Unsplash

Panagiotoulias brings a multifaceted background to the job. He’s held senior roles at American Airlines, Sabre, and Hawaiian Airlines—experiences he says gave him “the ability to look at the customer experience through a multicultural and multi-diverse lens.”

From corporate travel at American to the leisure-heavy market at Hawaiian, he’s managed varying customer expectations across geographies. “The technology part is crucial, too,” he notes. “All these customer experience initiatives are primarily driven through digitalization. My background at Sabre serves me very well in that regard.”

The Art of Diplomacy

Running a 25-member airline alliance requires more than leadership—it demands diplomacy. “With 25 member carriers, there’s no right or wrong,” Panagiotoulias says. “Different business plans, priorities, and geographies mean carriers serve different communities. Strategies might appear to be in conflict, but it’s really about relevance.”

Cultural diversity is at the heart of the alliance’s identity. From Singapore Airlines’ refined luxury to Air New Zealand’s relaxed, Pacific-inspired service, each carrier brings its own personality. “That’s a strength,” Panagiotoulias adds. “Our job is to make those differences feel unified when you’re moving through the journey.”

Photo: Star Alliance member airline employees in Uniform – Celebrating Star Alliance’s 20th anniversary

Although the alliance has 25 diverse airlines in its portfolio, what’s particularly interesting is that four of these airlines are united under the umbrella of the Lufthansa Group.

When asked about the influence of this German conglomerate at the alliance’s annual meetings, Panagiotoulias noted that Carsten Spohr, CEO of the Lufthansa Group, not only attends these meetings but also represents all four member airlines within the group (Lufthansa, SWISS, Austrian, and Brussels Airlines). That’s in stark contrast to the other 20 airlines, each with its own CEO, providing a broader set of perspectives to the table.

With ITA Airways set to join in 2026, it’s expected that Spohr will represent not four, but five airlines at future meetings.

Coverage, Retention, and Realignment

Star Alliance is currently navigating a period of transition. Having lost a founding member to SkyTeam and another due to a merger, it faces questions about its ability to maintain global coverage. But Panagiotoulias remains confident.

“SAS was a founding member and a strong partner, but their business direction has shifted. The same applies to Asiana,” he says. “Nonetheless, we still have 17 member carriers operating in Scandinavia and 12 serving Seoul.”

Photo: Theo Panagiotulias, Jorg Ebehart (ITA Airways) and Campbell Wilson (Air India). Courtesy of IATA

Looking ahead, the addition of ITA Airways—Italy’s flag carrier and successor to SkyTeam stalwart Alitalia—will help offset those losses. “ITA enhances an already strong network in Italy,” he notes. “We’re always open to opportunities, but they must deliver incremental value, not duplicative coverage.”

Anchor members like Lufthansa, Singapore Airlines, United Airlines, ANA, and Turkish Airlines provide stability in key regions, while airlines such as Ethiopian Airlines, Air India, and Copa Airlines extend the alliance’s reach into emerging markets.

One App, One Seat—80% of the Time

One of the alliance’s recent wins is in simplifying seat selection across member carriers. “The ability to seamlessly select your seat across airlines is not just an expectation—it’s a demand,” Panagiotoulias says.

Photo: Android app. Courtesy of Star Alliance

Today, Star Alliance enables seat selection across 80 percent of interline itineraries using a single airline app. “That’s the kind of initiative where we’ve achieved consensus, leveraged technology, and responded to what customers require.”

As for the ongoing frustration over inconsistent fees for seat selection—even among top-tier frequent flyers—he is pragmatic: “We don’t get involved in commercial decisions. Our role is to enable members—to find the technology that supports whatever model they choose.”

Baggage Tracking: The Digital Dividend

One of the more quietly transformative innovations has been the alliance’s cross-airline baggage tracking system. “We’re getting a lot of positive feedback,” says Panagiotoulias. “We track metrics like Net Promoter Score (NPS), and we’ve seen very favorable results tied to baggage tracking.”

Photo: Courtesy of Star Alliance

The feature is especially valuable for interline journeys, where a bag may pass through two or more carriers. “When a customer checks a bag with one airline and arrives with another, being able to track that bag is a powerful capability.”

He echoes United CEO Scott Kirby’s belief that well-handled disruptions can boost loyalty. “If a customer knows their bag is delayed but also knows where it is and when it will arrive, that’s a much better experience. What Scott said is spot on.”

Expanding the Lounge Footprint—Selectively

Star Alliance lounges have opened in major cities such as Los Angeles, Amsterdam, Paris, Rio de Janeiro, and Buenos Aires. The alliance also provides a user-friendly online tool to help customers locate lounges worldwide.

Most recently, a new facility opened in Guangzhou—a strategic signal of the alliance’s commitment to growing business markets.

Photo: Courtesy of Star Alliance

“Guangzhou is a critical and growing market,” says Panagiotoulias. “Despite our broad reach, it made sense for Star to step in and provide a lounge on behalf of our members.”

While no new lounges are currently in the pipeline, the alliance continues to evaluate opportunities. “Real estate is limited,” he notes, “but if there’s a strategic need for Star to lead, we’ll absolutely look into it.”

Photo: LAX Lounge. Courtesy of Star Alliance

Aviation enthusiasts can also appreciate the alliance’s special-livery aircraft, emblazoned with the iconic star logo. “They’ve become a bit of a collector’s item,” he says with a smile. “We see a lot of interest in those planes on social media.”

Intermodal Travel and Round-the-World Tickets

Star Alliance continues to lead in intermodal travel. Its partnership with Deutsche Bahn in Germany allows travelers to book air and rail segments together—on one itinerary. That’s still a rarity among global alliances.

“This kind of flexibility is what modern travelers are looking for,” says Panagiotoulias. “It’s more sustainable, too. If we can replace short-haul flights with high-speed rail in the right places, it’s good for everyone.”

Photo: Courtesy of Star Alliance

Even in a world dominated by point-to-point flying and low fares, the alliance’s Round-the-World (RTW) ticket remains popular—particularly among premium leisure and business travelers.

“It’s a very popular product,” he says. “Businesspeople often need to cover North America, Europe, and Asia. Meanwhile, more premium leisure travelers are buying business class tickets for long, global trips.”

Because RTW fares involve multiple airlines and touchpoints, they’re ideally suited to alliance coordination. “It’s something carriers can’t easily offer on their own.”

Could a Low-Cost Carrier Ever Join?

With JetBlue aligning more closely with United and Southwest recently joining IATA, the low-cost carrier (LCC) landscape is evolving. Could Star Alliance ever welcome an LCC?

Panagiotoulias is diplomatic but clear: “Business models evolve based on customer trends and behavior. Price is important, but it means little without value. That’s what customers are looking for—value first, then price.”

Photo: Courtesy of Star Alliance

He doesn’t rule out the possibility—but insists the bar remains high. “If there are white spots and a new member could fill that gap and deliver incremental value, we’d certainly consider it. But the decision ultimately lies with our members.”

A Collective Decision-Making Process

Star Alliance isn’t a top-down organization. It’s governed by consensus and owned by its member airlines—including decisions on who gets in.

Photo: Star Alliance members. Courtesy of Pascal Meier / Unsplash

“If an airline expresses interest in joining Star, we evaluate the submission,” Panagiotoulias explains. “But ultimately, it’s the members who decide. The core question is always: what incremental value does this bring for our customers and our network?”

For now, he says, the members are aligned in maintaining the current structure. The focus remains squarely on improving the customer journey—not expanding for expansion’s sake.

One Brand, One Journey

From seamless seat selection to cross-carrier baggage tracking and curated lounge experiences, Panagiotoulias is pushing Star Alliance toward a future where flying across multiple airlines feels like flying with just one.

Photo: Courtesy of Star Alliance

“We’re focused on enhancing the interline experience to feel as seamless as flying one airline,” he says. “That’s our goal.”

And while consensus may take time, the momentum is building—one digital tool, one cultural connection, one global itinerary at a time.