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Managing Strategic Airline Alliances (Ashgate Studies in Aviation Economics and Management)

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The book describes the growing trend of the formation of strategic alliances among world airlines. In the current highly turbulent airline operating environment, consolidation is one of the strategies for making airlines competitive and able to survive. The author explains the main reasons why the major world airlines have formed global alliances which include the need to enable airlines to have global coverage, by offering services beyond what an individual carrier can provide, either by itself or in a bilateral arrangement with another airline. It enables a member airline's brand to be spread worldwide.

Airlines have opportunities for growth and revenue enhancement, arising from feeding passengers through members' networks. Airlines derive substantial efficiencies through close co-operation, resulting in cost reductions. Frequent fliers have access to more lounges and miles worldwide. Passengers benefit from smooth transfers, as they are checked right through to their final destination.

The main worldwide alliance groups namely Star, Oneworld and SkyTeam are discussed. The alliances account for a high proportion of the total world airline capacity.

Other forms of airline cooperation include franchising, code sharing, interlining and pooling (now very rare).