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Benefits of Strategic Airline Alliances

In: Business and Management

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Benefits of a Global Airline Alliance .

Airline business is a billion dollar business and employs hundreds of thousands around the globe . Passenger demand has also been increased lately after the economic turmoil showing positive signs for a comeback. As operational costs is the biggest slice in the budget pie , there has never been a more important time for airline carriers to explore the benefits of joining a global airline alliance such as Sky Team , Star Alliance or One World.(Bamberger , Carlton and Neumann, 2001) basically gave a breakthrough study on how alliances was formed. The foundation of an alliance started only on a code share basis and a share of marketing exercises. They focused more on the American market as opposed to other markets around the world as American carriers was the anchors of what we know now as a global airline alliance. Studies was done based on data from the mid 90's and gives us an idea on how and why it was formed. Their study focused more on the domestic market rather then international and it can't be proven on the global market. This research is essential for the topic as this gives us a brief of history on what was the foundation of a global airline alliance. They also emphasized only on the operators point of view which can perceived as opinion based information. No survey was done on population or sample to determine the benefits on the alliance from a consumer point of view to give an overview on the benefits of forming an alliance .In terms of air travel alliances is concern , a lot has changed since this research.(Goh and Uncles , 2001) focuses on benefits of global airline alliances from a consumer point of view. They did a study where they examined the perception that business travelers had of the benefits and went on to consider the importance of these benefits in determining airline choice. They reached a conclusion

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