The Global Airline Alliances : An Important Part Of The Airline Business Industry

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

The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).

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.

To retain its cost advantage in the wake of the global recession, AirAsia entered into an alliance in January 2010 with Jetstar, the low-fare subsidiary of Australia 's flag carrier, Qantas. This was the first time two leading budget airlines had collaborated in this fashion. The alliance allowed the companies to explore joint aircraft purchasing, passenger and ground handling services cooperation and the transportation of each other 's passengers in the event of a disruption. Assuming the focus of the alliance was on cost sharing for services and aircraft procurement, it might prove effective.

The airline business is an industry that is competitive and unique, focussing on consumer choice and the responsiveness of airlines to changes in the external business environment. For any airline, this environment can be very complex as it is ‘hard for them to fully understand and impossible for them to fully control’ (The Times, n.d. p1). Virgin Atlantic is an international airline that is based in the UK. It was started by the entrepreneur Richard Branson in 1982 and now flies to 30 destinations around the world (Virgin Atlantic Airways Ltd, 2011). By looking at

Some of the alliances of Flight 001 are MINI Cooper, Song Airlines, and Northwest Airlines. Flight 001 has also had free editorial publishing in magazines such as People, Lucky, and Business Week. (Flight 001 Video). These partnerships are important to Flight 001's marketing because they help get their products to people that travel, which is the company's target market. By marketing through global companies, Flight 001 is able to attract a broader consumer base than they would by just marketing domestically. Other industries that would fit well with Flight 001 may be social media. I

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

efficiently than if either firm attempted to do so on its own. The role of strategic alliances in shaping the

The airline industry has seen drastic changes since September 11, 2001. The government ordered a complete shutdown for three days of not only all commercial aircraft but such carriers as domestic flights and emergency aircraft. For days after September 11th, all aircraft stayed on the ground. Even military aircraft had to receive special clearance to fly. In a ripple effect, the entire economy of the United States and the world was put on hold. The New York Stock Exchange shut its doors because of the attacks on the towers of the World Trade Center.

Spirit Airlines should do a global expansion plan with bases of operations, not limited to, passenger flight operations, maintenance operations, ramp operations, airport facilities operation, in international countries. Global expansion will and should include hiring and firing of staff, training and development of staff, and financial reporting for existing currencies.

The strategic alliance between Qantas and Emirates was a result of a careful analysis of the airline industry and its involving competitors.

Deutsche Lufthansa AG is the leading airline company in terms of passage and fleet size not only in Germany but also in the whole of Europe. Given the many challenges posed by the general, industrial and competitive environment of the airline industry, Lufthansa and other existing airlines decided to form an alliance, know as Star Alliance. This alliance was founded on the common understanding that it is quite unfeasible for a single company to stay alive in a global network if not part of an alliance. This cooperative strategy serves as a mechanism for the Aviation Group to enter the international market swiftly, and with greater impact through the support of the alliance. Since mergers are illegal across country boarders the strategic response by Lufthansa was to create a legally independent company that shares some of its resources and capabilities to develop a competitive advantage in the passage segment of the airline market globally. This competitive advantage and the benefits of networks effects, result in an increasing offer of customer flights, better service, more destinations, better flight connections, in addition to addressing further needs within the passenger airline segment. Lufthansa is therefore able to increase value and reduce cost and thus maximize gains through its cooperative international strategy by sharing customer information with other partners as well as resources including

In less than twenty years, the global industry has gone through tremendous change. Several airlines had gone out of business that had been on top of the industry for years. One of the remarkable changes had been airline alliances. The case focuses on the airline industry and how airlines are forming alliances and joint ventures. It then introduces the partner firms Air France KLM , and Delta . Air France KLM had over 25 collaborative agreements with other carriers and was a founding member of Skyteam, one of the leading airline groups. Air France KLM and Delta Airlines formed revenue

Literature reveals that the globalisation of the airline industry has resulted in easier accessibility across international borders. This has greatly benefited the tourism industries economic sector with a rise of foreign tourists and an increase in global competition (Dwyer, 2015). However the negative effects on the environment are vast with climate change has become a global problem. A swish study proved that out of the countries examined, 50-85% of tourism based emissions are as a result of air transport and therefore if the tourism industry is to reduce emissions, it can only be achieved through a major decrease in these environmentally destructive emissions caused by aviation (Perch-Nielsen et al, 2010).

Closely linked to economy - The airline industry can be described as highly cyclical since it