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Strategic Alliances Of Airlines : Economic Benefits For Consumers And Airlines Companies

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4. Strategic Alliances of Airlines – Economic Benefits for Consumers and Airlines Companies

In today’s extremely competitive market environment, it’s almost close to impossible to without partners and this seems to have become a dominant feature in the airlines industry. Alliances are an immediate result of globalization, increased competition among the airline companies and most importantly due to customers increasingly demanding ‘from anywhere to anywhere’ service which is almost impossible for any airline to supply efficiently. As a result of which, airline companies across the world unite their various resources by entering into strategic airline alliances. Alliances enable and promote co-operation of commercial and operational
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Since, the offering is enormous and price can be altered accordingly
• Airline companies co-operate with their alliance partners through code sharing, franchises, block space agreements and frequent flyer programs to reach out to their global customers
4.2 Airline Alliances – What’s in store for the Customers?
Meeting the demands of consumers for network scope and depth can involve airlines in differing degrees of cooperation. The chart below was taken from a recent European Commission and US DOT (2010) report and illustrates the vast spectrum of airline co-operation, varying from traditional interlining to joint ventures.

Provide customers with a seamless travel experience with very low risks of missing connecting flights and losing baggage. Arrangements between airlines with Code-sharing offer passenger much better connections than traditional interlining. In addition to that, flexible FFP programs make it possible to passengers to earn miles on one airline and use it on another. But the most vital benefit from the customer’s point of view is the fact that due to the alliances broad network, passengers now have a very good choice of service to almost any destination
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