Global Alliances

In: Business and Management

Submitted By pochos10
Words 2870
Pages 12
Airline Global Alliances

May 11, 2015

Table of Contents

Abstract 3

Introduction of Strategic Alliances in Airline Industry 4

Evaluation of Alliances in Airline Industry 4

Purposes of Alliance between Airlines 5

Disadvantage of Alliance between Airlines 6

Major Airline Alliances in the World 6

Alliances help Airlines to Achieve Comparative Advantage 7

Sky Team Alliance 8

Airline Alliances Enhance the CSR 9

Conclusion 10

References 12


Now a days the term global alliance is widely used in every business, but its presence is more significant in airline industry. The strategic alliances in airline industry are global in nature. The past deregulation impacted on strategic alliances positively, industry is freer to set routes and cooperation’s, due to oil price hike the cooperation of airline firms was unavoidable. The alliances help generating traffic between an airline and other parties that are partner. The European alliances were threatened by US alliances; in such scenarios United Airlines and British Airlines came in contract to avoid threats from US airlines. The benefits of strategies alliances are to gain foothold in any country like many airlines did in Europe, while at the same time is to establish global presence. Strategic alliance and mergers of firms acts as marketing technique in airline industry. Many of the European airlines bought stakes from the Asian and US airlines by working on strategic alliances. In the airline industry there are three major alliances: One World, Star Alliance and Sky Team Alliance. The paper concludes that alliances are good to achieve betterment in things; the airlines may have better CSR responsibility and supplier’s behaviour under an alliance, moreover besides cost effectiveness much can achieve due to…...

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