Essay about Strategic Alliances in Aviation Industry

Essay about Strategic Alliances in Aviation Industry

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Strategic Alliances in Aviation Industry: An Assessment of perception of business travellers and benefits of international network development as derived by airlines operators

Proposal Summary
The proposed study is aimed at identifying the reasons and success factor of increasing alliances being witnessed in airlines sector. Strategic alliances have proven to be successful in other sectors like manufacturing and automobiles but the effectiveness of these alliances in aviation sector are a less researched area. The study will discuss the peculiarities of the sector and reasons that make alliances possible for development of an international network. The results will provide detailed information about the impact of strategic alliances on performance of companies and passengers and the level of satisfaction derived from the increased services after alliance. The secondary data will be used to analyse the profitability of airlines after entering into some kind of strategic alliance. We will focus on two major alliance in aviation sector namely Star Alliance and One World to reach the answers of research questions.
(overall a good proposal where we are experiencing various alliances such as Etihad with Darwin Airline and Air Serbia ;

Literature Review
Since airlines have historically shown poor performance, it has been suggested that airline business is not cyclical business but bad business (Das, 2011). Indeed, the combined net profit margins of United States airlines, for instance, have typically been only about half of the Standard and Poor’s 500 list of industrial, utility and transportation companies’ net profit margins (ibid.). For several years the airline industry has been very turbulent and has been through financial...


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... 54-58
Kleyman, B. (2010), Managing Strategic Airline Alliances, Ashgate Publishing
Latrou, K. and Oretti, M. (2007), The Airline Choices for the Future: From Alliances to Mergers, Ashgate Publishing
Oum, T. H. and Park, J. H. (1997), Airline alliances: current status, policy issues and future directions, Journal of Air Transport Management, 3 (3), 133-144
Oum, T. (2000), Globalization and Strategic Alliances: The Case of Air Transport Management, Pergamon Press
Rhoades, Dawna L. & Lush, Heather (1997), A typology of strategic alliances in the airline industry: Propositions for stability and duration, Journal of Air Transport Management, Elsevier, vol. 3(3), pages 109-114.
Tiernan, S and Rhodes, D. (2008), Airline alliances service quality performance- Analysis of US and EU member airlines, Journal of Air Transport Management, (14) 2, pp. 99-102







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