Why Airline Alliances?
- Before Airline Alliances, global travel was complex and inconvenient
- Purchasing and maintenance were fragmented
- Connections were uncoordinated, problematic, and time consuming
- Frequent Flyer Benefits, including lounge access, did not extend beyond individual airline offerings
A Global Solution:
In 1997 Air Canada, Lufthansa, SAS, Thai Airways International, and United responded to customer needs
- Together they established the Star Alliance on May 14, 1997 – the first global airline alliance
- Key reason for alliance success: Global preemption by partner selection as first mover advantage resulted in alliance attractiveness to potential allies throughout the alliance lifecyle (cf. 2005 statistics).
[...] Long Term Orientation Increase the level of integration ? Mergers and Acquisitions ? External Presentation Page 31 History Network Benefits Products Organisation BENEFITS Summary Summary Thank You! External Presentation Page 32 Bibliography T. K. [...]
[...] Spanair joins the network. Ansett Australia and Air New Zealand join. October March April July ANA joins the network and Singapore Airlines officially gains Observer Status. Austrian Airlines Group, comprising Austrian Airlines, Lauda Air and Tyrolean Airways, joins. Singapore Airlines joins October March May LOT joins to become the 15th member. [...]
[...] Mexicana terminates membership in Star Alliance. US Airways joins the Star Alliance network. June Membership applications of TAP and SAA are approved to join in 2005. British Midland and Mexicana join. External Presentation Page 8 History History Network Benefits Products Organisation Summary External Presentation Page 9 History History Network Benefits Products Organisation Summary Has the Star Alliance Been Stable and Successful? [...]
[...] Das & B.-S. Teng, "Instabilities of Strategic Alliances: An Internal Tensions Perspective", Organization science Hamel, Competition for Competence and Inter-Partner Learning Within International Strategic Alliances. Strategic Management Journal, Vol Special Issue: Global Strategy (Summer, 1991), pp. 83-103) Andrew C. [...]
[...] Future Fuel Costs 4. Growing Internal Competition How can the alliance adjust to environmental changes? External Presentation Page 13 History Network Network Benefits Products Organisation Summary Growing Importance of Connections with BRIC Countries External Presentation Page 14 History Network Network Benefits Products Organisation Summary Growing Competition from Low Cost Carriers Severe competition is currently limited to regional flights and if intensified, margin potential could be eroded Dominant position on international premium routes is being threatened Dilemma: Compete on quality and convenience? [...]
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