IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v7y2001i6p349-360.html
   My bibliography  Save this article

Evolution of global airline strategic alliance and consolidation in the twenty-first century

Author

Listed:
  • Fan, Terence
  • Vigeant-Langlois, Laurence
  • Geissler, Christine
  • Bosler, Björn
  • Wilmking, Jan

Abstract

Global airline strategic alliances have emerged since the late 1980s, and their number has slowly risen through the years. Will the number of such alliances continue to proliferate? Or will airlines consolidate with one another to form mega-carriers? In this paper, the likelihood of various airline consolidation and alliance development possibilities was examined based on a number of high-level trends and forces. The most probable near-term industry alliance and consolidation structure is described, accompanied with a probable path of evolution. These predictions have important implications for managers of strategic alliances, carriers who are currently in an alliance as well as carriers who are planning to join one.

Suggested Citation

  • Fan, Terence & Vigeant-Langlois, Laurence & Geissler, Christine & Bosler, Björn & Wilmking, Jan, 2001. "Evolution of global airline strategic alliance and consolidation in the twenty-first century," Journal of Air Transport Management, Elsevier, vol. 7(6), pages 349-360.
    • Handle: RePEc:eee:jaitra:v:7:y:2001:i:6:p:349-360
    DOI: 10.1016/S0969-6997(01)00027-8
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699701000278
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/S0969-6997(01)00027-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Morasch, Karl, 2000. "Strategic alliances as Stackelberg cartels - concept and equilibrium alliance structure," International Journal of Industrial Organization, Elsevier, vol. 18(2), pages 257-282, February.
    2. Park, Jong-Hun & Zhang, Anming, 1998. "Airline alliances and partner firms' outputs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 34(4), pages 245-255, December.
    3. Park, Jong-Hun, 1997. "The effects of airline alliances on markets and economic welfare," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(3), pages 181-195, September.
    4. Kim, E Han & Singal, Vijay, 1993. "Mergers and Market Power: Evidence from the Airline Industry," American Economic Review, American Economic Association, vol. 83(3), pages 549-569, June.
    5. Elizabeth E. Bailey & Dong Liu, 1995. "Airline Consolidation and Consumer Welfare," Eastern Economic Journal, Eastern Economic Association, vol. 21(4), pages 463-476, Fall.
    6. Oum, Tae Hoon & Yu, Chunyan & Zhang, Anming, 2001. "Global airline alliances: international regulatory issues," Journal of Air Transport Management, Elsevier, vol. 7(1), pages 57-62.
    7. Brueckner, Jan K & Spiller, Pablo T, 1994. "Economies of Traffic Density in the Deregulated Airline Industry," Journal of Law and Economics, University of Chicago Press, vol. 37(2), pages 379-415, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. João P. Pita & Cynthia Barnhart & António P. Antunes, 2013. "Integrated Flight Scheduling and Fleet Assignment Under Airport Congestion," Transportation Science, INFORMS, vol. 47(4), pages 477-492, November.
    2. Jeremy Jie Ming Kwok & Dong-Yup Lee, 2015. "Coopetitive Supply Chain Relationship Model: Application to the Smartphone Manufacturing Network," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-16, July.
    3. Schosser, Maximilian & Wittmer, Andreas, 2015. "Cost and revenue synergies in airline mergers – Examining geographical differences," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 142-153.
    4. Chao, Ching-Cheng & Kao, Ko-Ting, 2015. "Selection of strategic cargo alliance by airlines," Journal of Air Transport Management, Elsevier, vol. 43(C), pages 29-36.
    5. Jui-Te Chiang & Chei-Chang Chiou & Shuh-Chyi Doong & I-Fang Chang, 2020. "Research on the Construction of Performance Indicators for the Marketing Alliance of Catering Industry and Credit Card Issuing Banks by Using the Balanced Scorecard and Fuzzy AHP," Sustainability, MDPI, vol. 12(21), pages 1-24, October.
    6. Vlachos, Ilias & Lin, Zhibin, 2014. "Drivers of airline loyalty: Evidence from the business travelers in China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 1-17.
    7. Cruijssen, Frans & Cools, Martine & Dullaert, W., 2007. "Horizontal cooperation in logistics: opportunities and impediments," Other publications TiSEM ab29fad8-1faf-422b-826e-0, Tilburg University, School of Economics and Management.
    8. Cruijssen, F. & Braysy, O. & Dullaert, W. & Fleuren, H.A. & Salomon, M., 2006. "Joint Route Planning under Varying Market Conditions," Other publications TiSEM 3de2ec0a-7424-43ec-a419-5, Tilburg University, School of Economics and Management.
    9. Adler, Nicole & Smilowitz, Karen, 2007. "Hub-and-spoke network alliances and mergers: Price-location competition in the airline industry," Transportation Research Part B: Methodological, Elsevier, vol. 41(4), pages 394-409, May.
    10. Elena Maggi & Ilaria Mariotti, 2009. "Logistics FDI in Italy: integration strategies and motivation," Working Papers 09_2, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    11. Garg, Chandra Prakash, 2016. "A robust hybrid decision model for evaluation and selection of the strategic alliance partner in the airline industry," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 55-66.
    12. Anselm Schneider & Christopher Wickert & Emilio Marti, 2017. "Reducing Complexity by Creating Complexity: A Systems Theory Perspective on How Organizations Respond to Their Environments," Journal of Management Studies, Wiley Blackwell, vol. 54(2), pages 182-208, March.
    13. Ryerson, Megan S. & Kim, Hyun, 2013. "Integrating airline operational practices into passenger airline hub definition," Journal of Transport Geography, Elsevier, vol. 31(C), pages 84-93.
    14. Bergamini, Elisabetta & Gitto, Simone & Mancuso, Paolo, 2010. "Restructuring the Alitalia business model," Journal of Air Transport Management, Elsevier, vol. 16(1), pages 16-19.
    15. Shaw, Shih-Lung & Lu, Feng & Chen, Jie & Zhou, Chenghu, 2009. "China’s airline consolidation and its effects on domestic airline networks and competition," Journal of Transport Geography, Elsevier, vol. 17(4), pages 293-305.
    16. Castiglioni, Marco & Gallego, à ngeles & Galán, José Luis, 2018. "The virtualization of the airline industry: A strategic process," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 134-145.
    17. Cruijssen, F. & Borm, P.E.M. & Dullaert, W. & Hamers, H.J.M., 2007. "Joint Hub Network Development," Discussion Paper 2007-76, Tilburg University, Center for Economic Research.
    18. Never, Jan & Suau-Sanchez, Pere, 2020. "Challenging the interline and codeshare legacy: Drivers and barriers for airline adoption of airport facilitated inter-airline network connectivity schemes," Research in Transportation Economics, Elsevier, vol. 79(C).
    19. Cruijssen, F., 2006. "Horizontal cooperation in transport and logistics," Other publications TiSEM ab6dbe68-aebc-4b03-8eea-d, Tilburg University, School of Economics and Management.
    20. Wang, Fan & Zhuo, Xiaopo & Niu, Baozhuang, 2017. "Strategic entry to regional air cargo market under joint competition of demand and promised delivery time," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 317-336.
    21. Elena Maggi & Ilaria Mariotti, 2009. "Logistics FDI in Italy: integration strategies and motivation," Working Papers 0902, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    22. Tascón, Diana C. & Díaz Olariaga, Oscar, 2021. "Air traffic forecast and its impact on runway capacity. A System Dynamics approach," Journal of Air Transport Management, Elsevier, vol. 90(C).
    23. Piotr Niewiadomski, 2013. "International airline groups in Africa," Global Development Institute Working Paper Series ctg-2013-36, GDI, The University of Manchester.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wen, Yuh-Horng & Hsu, Chaug-Ing, 2006. "Interactive multiobjective programming in airline network design for international airline code-share alliance," European Journal of Operational Research, Elsevier, vol. 174(1), pages 404-426, October.
    2. Rafael Moner Colonques & Ricardo Flores Fillol, 2006. "Strategic Effects Of Airline Alliances," Working Papers. Serie AD 2006-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Brueckner, Jan K. & Proost, Stef, 2010. "Carve-outs under airline antitrust immunity," International Journal of Industrial Organization, Elsevier, vol. 28(6), pages 657-668, November.
    4. Yan, Jia & Fu, Xiaowen & Oum, Tae Hoon & Wang, Kun, 2019. "Airline horizontal mergers and productivity: Empirical evidence from a quasi-natural experiment in China," International Journal of Industrial Organization, Elsevier, vol. 62(C), pages 358-376.
    5. Kai Hüschelrath & Kathrin Müller, 2014. "Airline Networks, Mergers, and Consumer Welfare," Journal of Transport Economics and Policy, University of Bath, vol. 48(3), pages 385-407, September.
    6. Vaze, Vikrant & Luo, Tian & Harder, Reed, 2017. "Impacts of airline mergers on passenger welfare," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 130-154.
    7. Alderighi, Marco & Gaggero, Alberto A., 2014. "The effects of global alliances on international flight frequencies: Some evidence from Italy," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 30-33.
    8. Morrell, P.S & Pilon, R.V, 1999. "KLM and Northwest: a survey of the impact of a passenger alliance on cargo service characteristics," Journal of Air Transport Management, Elsevier, vol. 5(3), pages 153-160.
    9. Xia, Wenyi & Zhang, Anming, 2016. "High-speed rail and air transport competition and cooperation: A vertical differentiation approach," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 456-481.
    10. Anming Zhang & Yimin Zhang & Joseph A. Clougherty, 2011. "Competition and Regulation in Air Transport," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 35, Edward Elgar Publishing.
    11. Bilotkach, Volodymyr & Fageda, Xavier & Flores-Fillol, Ricardo, 2013. "Airline consolidation and the distribution of traffic between primary and secondary hubs," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 951-963.
    12. Brueckner, Jan K. & Pels, Eric, 2005. "European airline mergers, alliance consolidation, and consumer welfare," Journal of Air Transport Management, Elsevier, vol. 11(1), pages 27-41.
    13. Gaurab Aryal & Federico Ciliberto & Benjamin T Leyden, 2022. "Coordinated Capacity Reductions and Public Communication in the Airline Industry," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 3055-3084.
    14. Brueckner, Jan K., 2001. "The economics of international codesharing: an analysis of airline alliances," International Journal of Industrial Organization, Elsevier, vol. 19(10), pages 1475-1498, December.
    15. Yahua Zhang & David Round, 2009. "Policy Implications of the Effects of Concentration and Multimarket Contact in China’s Airline Market," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(4), pages 307-326, June.
    16. Alderighi, Marco & Gaggero, Alberto A. & Piga, Claudio A., 2015. "The effect of code-share agreements on the temporal profile of airline fares," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 42-54.
    17. Clougherty, Joseph A., 2004. "Integrating Industrial Organization and International Business to Explain the Cross-National Domestic Airline Merger Phenomenon," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 19, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    18. Bilotkach, Volodymyr & Hüschelrath, Kai, 2019. "Balancing competition and cooperation: Evidence from transatlantic airline markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 120(C), pages 1-16.
    19. Grauberger, Waldemar & Kimms, Alf, 2016. "Revenue management under horizontal and vertical competition within airline alliances," Omega, Elsevier, vol. 59(PB), pages 228-237.
    20. Park, Jong-Hun & Zhang, Anming & Zhang, Yimin, 2001. "Analytical models of international alliances in the airline industry," Transportation Research Part B: Methodological, Elsevier, vol. 35(9), pages 865-886, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:7:y:2001:i:6:p:349-360. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.