The current legal regime lags behind economic realities and there is a need for faster changes in the law, domestic and international, to reflect these developments. This paper first focuses on legal issues arising from the most popular form of airline alliance, namely the allocation of civil liability for breach of contract and air disaster cases in code-sharing arrangements. Secondly, some examples will be given of the legal effects of strategic alliances and airline integration on the evolution of bilateral air services negotiations and agreements. Finally, some interesting legal considerations will be made on the potential harmonisation of laws in relation to the international air transport order. As the commercial methods and repercussions from airline co-operation [are] dynamic and multi-faceted, this paper is not meant to be exhaustive but will hopefully provoke further thought and discourse on these issues within the aviation legal community.