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You probably noticed that you can create your ship as an "alliance" ship (or switch your own ship to become an alliance ship), it means that it belongs to the alliance and thus, anyone in the alliance (that have the right to) can take control of the ship, or give them order I guess.
When you fly an alliance ship, the relation with the faction are tied to the alliance (which can be different from yours), and what you will do while flying an alliance ship will only affect the alliance's relation. It also means that you can be at war with a faction, but not while flying an alliance ship.
I never got to try to fly the same alliance ship, but I guess it works with the slots (weapons and fighters slots), and then everyone can do something different.
Alliance is just that, a shared pool of property and resources. Every player on his own represents a Faction - he has his own counter for resources and credits, ships and stations he controls and operates.
Alliance is a separate Faction, that is shared between several Factions/players. It has its own counters and associated assets, and all players in the Alliance can pull into and from its reserves according to Ranks and corresponding rights given to those Ranks. Initial diplomatic relations to all other Factions are set according to those relations of the Alliance Founder and leader, and then change according to actions done by Alliance ships, not by individual players.
Members share access to any Alliance ships and stations. Multiple members can operate the same ship, where first player controls the ship movement and delegates weapon controls to other members as he sees fit, allowing for more effective combat. Any member's personal ship or station can be trasferred to Alliance, but they cannot be privatized back.
Members can deposit and withdraw credits, resources, turrets and systems into Alliance Vault. Any operations with these assets (looting, mining, rewards, repairs etc.) are also performed from and into that Vault when operating Alliance ships.
Long story short, Alliance is a virtual "player", that all members share together.
This. The perfect description. I applaud you. Now if only all people could extrapolate all of what you wrote from that one sentence... we would be landing in bloody Andromeda by now, not experiment with sending tin cans to Mars.