swissair alliances case study

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.

A half a century ago, Rollin King and Herb Kelleher decided to join together and to start a different sort of airline. So, in 1967 South West Airlines was started. However, the company’s name at the time was Air Southwest and then subsequently changed to South West Airlines as it progressed. In 1971 it started operating as an interstate airline within Texas. Moreover, the expansion of the flight began in 1975, to cities all

Air Canada was founded in 1937, it was privatized in 1989. After facing net losses from 1990-1993, entered into profits in 1994. It was a founding member of star alliance in 1997, which has 27 partners headquartered in Montreal.

18 cities by 1987. River City Airlines (RCA) began in 1969 with service to 4 cities and

This is somewhat slower than the projected 3.5% gain for real gross domestic product (GDP) in 1998. In 1999, RPMs would advance 2.5% to 605 billion, while real GDP is seen growing 1.7%. The recently sluggish pace for air travel represents a break from the normal pattern: since 1987, air travel has grown 1.8 times faster than real GDP.

American Airlines is one of the major American airlines who serves nearly 50 countries globally and also a member of the one world global alliance. The airline corporate headquarters are in Fort Worth, Texas. Over the years the airline expanded through the union or merger of 85 companies. Robertson Aircraft Corporation and Colonial Air Transport were the core of the foundation of this company. In 1921, Robert Aircraft organized first in Missouri as a general manufacturer and flying service who flew its first mail route on April 15, 1926 between Chicago and St. Louis, Missouri. The first flight flown by pilot Charles A. Lindbergh. A charter, Colonial Air called Bee Line formed in 1923, flew mail between New York City and Boston which began on

Historically speaking, it was founded in 1937, provides scheduled and charter air transport for passengers and cargo to 178 destinations worldwide. Canada 's national airline originated from the Canadian federal government 's 1936 creation of Trans-Canada Airlines (TCA), which began operating their first transcontinental flight routes in 1938. In 1965, TCA was renamed Air Canada following government approval. After the deregulation of the Canadian airline

• Provide background on the global industry • Present a regional analysis • Discuss current and future evolvement of the industry (trends) • Discuss challenges and strategies impacting the industry • Discuss the new breed of airlines • Discuss why airlines fail and how to achieve success

American Airlines was founded in the 1930’s, under the name of American Airways, after acquiring 80 small airline carriers (Koenig 2011), mainly used for mail services. Charles Lindbergh was noted as flying the first American Airlines flight, which carried mail from St. Louis, MO to Chicago, IL (American Airlines 2016). After nearly 10 year of flying mail, the name was changed to American Airlines, and became the first airline to fly passengers from New York to Chicago, in a Douglas DC-3; this was the “plane that changed the entire airline industry, switching revenue sources from mail to passengers (American Airlines 2016). American Airlines continued to revolutionize passenger flight service, by offering non-stop transcontinental flights across the United States in 1953. In 1981, American Airlines joined other major airlines in the hub-and-spoke system, and created their first hub at Dallas/Fort Worth International Airport, the same location as their headquarters. They expanded to new hubs throughout the 1980’s to other cities throughout the United States, Europe and Japan.

American Airlines began trading on the New York Stock Exchange on June 10, 1939. During the second World War, half of American Airlines’ fleet, along

Air India began its services in 1932 and has been operating in India for the last 78 years. It is the oldest passenger flight of India. The government of India holds 49% of Air India’s share with an option to acquire 2% more since 1946. This made Air India a public sector thus enabled it to operate flights internationally. In spite of being a public sector company Air India has been running in loss for the past 10 years.

A little perspective of this timeline period: the first commercial jet flight happened on May 2, 1952, British Overseas Airways Corporation launched commercial air travel by jet, sending 36 passengers. In 1955. Disneyland in Anaheim, California, opened on July 17, 1955. In 1956, telephone cables placed under the ocean surface.....permitting transcontinental calls

The airline industry is governed by a rapidly evolving framework of economic regulation by which many factors, significantly continued liberalisation and open skies, have caused much turbulence and uncertainty in this increasingly low margin market.

The company incorporated in June 1971 and officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. It soon became the premier carrier of high-priority goods in the marketplace and the standard setter for the industry it established.

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