Globalization is an inevitable trend for many industries. As business strives to attain and defend competitive advantage, strategic alliances have become a crucial part of this globalization process. In the airline industry, intensive regulation tends to be the major barrier of globalization; therefore, the popularity of alliances among carriers has been regarded as the implementation of globalization. This paper first presents the evolution of aviation globalization; in addition, it describes current development of airline alliances and its impacts on market structure. It also discusses government policy toward alliances in the US and Taiwan.