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Strategic Alliances
INTRODUCTION
Deregulation has brought various changes in functioning of
the aviation industry.
Alliances are strategies that are used by the companies while
involving partnership.
Strategic airline alliances are dominating in the current air
transport industry with the largest airlines of the world which
belongs to the alliance groupings – Star Alliance, Oneworld,
SkyTeamand Wings; which represent 56% of world’s
Revenue Passenger Kilometers (RPK).
2. Asset pools
These occur in the area of maintenance, where airlines might
pool the spare parts (in some cases even engines) they store
at outstations or joint warehouses.
4. Code sharing
On a single route or across larger parts of the respective
networks.
Airline A sells a flight under its own airline designator code,
even though that flight is operated by another airline, B (i.e. A &
B ‘share’ a designator code
8. Integrated Feeder
It is between a larger carrier and a regional airline where the
smaller airline operates fully and exclusively under franchise to
feed its partner.
The larger airline establishes ‘dominated network’ around it.
Example: In USA, where major carriers have their integrated
feeders. In Europe, a dominated network is maintained by
Lufthansa with regional airline Lufthansa Cityline and also by
British Airways.
(ONEWORLD MANAGEMENT
It is the third largest airline alliance.
Oneworld was established in 1999.
Its management company is based in Vancouver, British
Columbia, Canada.
It has 10 members and 17 affiliates.
Data Collection
ü Primary Data:
FAQ’s and One-on-One interviews were conducted.
ü Secondary Data:
It has been collected from various sources - magazines like
Business world, business and marketing magazine, ET500 by ET
intelligence group, Aviation Times and Economic Times. Articles
and other data from internet were also taken into consideration to
get the relevant information.
Types of cooperation:
FFP
Code share
Strategic Alliance with antitrust immunity and
Strategic Alliance without antitrust immunity