Case Study On Star Alliance

Qantas is the world's second oldest airline, having been founded in the Australian outback in 1920. It

6.1.2 Strong brand and alliances. It has strong brand, ties and alliances; with its large market share American Airlines is known for its unique personality, which is recognized by its customers through good quality products and services received. The company has strong international ties and alliances, “American is one of the founding members of one world alliance, whose members and members elect serve more than 1,000 destinations” (American Airlines 10-K, page 5), such alliances increase flight frequencies in international markets for American Airlines. An alliance such as one world could

In the aviation industry, strategic alliances come in the form of bilateral or multilateral agreements where allied airlines share similar business objectives and coordinate their services to achieve their common goals. According to Doganis (2006), they involve use of a common brand, a uniform service standard, and the asset co-mingling of aircraft, staff, traffic rights, terminal facilities or capital resources to identify the airlines that are in a strategic alliance. Global airline alliances also exist in the aviation industry. Alliance, OneWorld, and SkyTeam were launched between 1997 and 2001, and each contain a dozen or more members. Figure 1 displays the differing levels of coordination between partners in the various partnership types.

2. United Airlines likes to use strategic planning to try and stay ahead of the competition but in its history it has not always worked. United Airlines has tried to make mergers without the approval of the union and were not able to complete it when the department of justice said that the merger would not happen because it would bring a loss in competition. One of the things that has helped the business, is that they use a hub and spoke method for their passengers. This allows the company to provide many different air ports and terminals that its customers can use and also helps to stream line flight schedules and saves the company millions of dollars every year. Partnering with these major companies to form a global alliance helps to circumvent national laws, share resources to develop additional routes and global marketing strategies. The major alliances were Star, Oneworld, SkyTeam, and Wings. The agreememnt that these companies made to work together saved all of the millions of dollars and was able to help all of the companies to compete globally.

Customer service is a valuable influence on quality. Qantas delivers the expectations of customers by representing civil and accommodating staff members. Qantas has implemented a series of operational strategies to enhance the speed of their service. These vary from booking flights online, online check in, check in kiosks and Q Bag Tags. Dependability at Qantas is based on the consistency of on-time departures and arrivals. Flexibility is relevant to Qantas’ responses to the changes in market demand. Flexibility is demonstrated through Jetstar’s variable fare. Qantas offers customisation through its participation in the Oneworld Alliance, where it can provide its services to over 680 destinations in 134 countries. Qantas has worked on developing less costly and more efficient opportunities for its consumers by launching new discount airlines: Jetstar and Jetstar

“Air Canada is one of 99 airlines based in Canada; it is the largest domestic and international airline. It is among the top 20 airlines and together with it’s partner’s Air Canada express regional and Air Canada rouge, Air Canada attends over 38 million passengers annually and flies to more than 190 destinations on five continents” (Air Canada). It serves 60 Canadian cities, 49 destinations in the United States of America and 73 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America, it flies to most cities using codeshares with airlines such as: Etihad Airways, Lufthansa, Singapore Airlines, Ethiopian Airlines, etc. Air Canada is one of the founding members of “Star Alliance”, the world’s largest and

Cooperation within alliances poses several challenges to managers: the size of the alliance, the need to intensify cooperation and the harmonization and standardization of common processes, and the search for synergies to reduce costs. However, in times of crisis, alliances do not necessarily prevent stiff competition between the partners. At present, five alliances – One World, Star, Wings, Sky Team and Qualiflyer stand out as the core groupings around which other airlines with strong regional networks will come together to form worldwide networks and can be described as global alliances. But they remain fragile creations subject to competing attractions and economic forces. Over the years, several companies have switched from one alliance to another. Austrian Airlines, for example, moved from the Qualiflyer to the Star alliance. Air France has recently floated the idea of creating a Mediterranean alliance with Alitalia and Iberia. To make this three-way deal possible, Iberia would have to leave the OneWorld alliance.

The joined aircraft is required to keep up all center points presently served by American Airlines and US Airways, bringing about more travel choices for clients. Both aircrafts expect that the territorial bearers they claim – AMR Corporation's American Eagle and US Airways' Piedmont and PSA – will keep on working as unmistakable substances, giving consistent support of the consolidated carrier. The organization will be headquartered in Dallas-Fort Worth and will keep up a noteworthy corporate and operational vicinity in Phoenix.

Gittell, J. (2003). _The Southwest Airlines Way: Using Power of Relationships to Achieve High Performance._ New York: McGraw-Hill. Retrieved June 8, 2014

Lastly, the Star Alliance has succeeded in making United Airlines a more globally-known carrier by teaming up with some of the world’s top airlines. This network is now the largest global airline alliance, and has offered connections for passengers and cargo customers to over 965 world destinations in around 162 countries. Some of United Airline’s well-known partners include: Air Canada Lufthansa, Scandinavian Airlines, Singapore Airlines, South African Airlines, and Air New Zealand, just to name a few. All of United’s Star Alliance partners are complete participants in the lucrative Mileage Plus Program, which offers customers a chance to earn miles as they fly which can later be retrieved and reused for other flights and is the runner-up to being the most successful loyalty programs worldwide with 54 million global members. (United Air Lines, 2009)

Air Asia leading airline was established with the dream of making flying possible for everyone. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes and a passionate approach to business. Together with our associate companies, Air Asia X, Thai Air Asia, Indonesia Air Asia, Philippines Air Asia and Japan Air Asia.

result of this, no other airline in the industry’s history has enjoyed the customer loyalty and

Within the category of services, it applies to different types of customers such as family, solo travellers and business travellers, the key focus of this report is on the upper-class service for business travellers and how it influences business travellers to purchase a flight package from them instead of using their competitors Jet airways, British Airways or Emirates. We can discover the decision-making process and how it operates but it’s important to understand the marketing strategy behind the company that makes it very successful and attracts more business travellers to fly with them.

One of the world’s most competitive and prominent industries is the airlines industry. It generates huge amounts of income as well as employment each year. Some of the common names in US air travel service providers are Alaska, Northwest, Southwest, US airways, American etc.

Competing through alliances in the airline industry: The AIR FRANCE- KLM/DELTA AIR LINES JOINT VENTURE