In the foreseeable future the alliance will become an increasingly important feature of the airline industry around the world. Despite its growing importance to airline management, aviation policy makers, and research literature, there has not been much rigorous analysis of airline alliances in economics or management literature. It is clear that the authors of this book are among the first researchers to do serious analytical studies and quantitative analysis on airline alliances. Given the growing importance of alliances, there is a clear need for a book that gives a comprehensive and analytical treatment of key aspects of airline alliances. In this book, they accomplish just that. This book presents the past history and current status of airline alliances, reasons why alliances are being formed, analyzes the questions: 'why are alliances likely to remain a key fixture of the airline industry in the foreseeable future? And 'what implications do alliances have on carrier management and public policy makers'? And quantifies the key economics effects of airline alliances.
Chapter Headings: Introduction. Background on Strategic Alliances. Areas of Collaboration and Related Economic Issues. Models of Strategic Alliances. Effects of Alliances on Productivity, Pricing and Profitability. Effects of Alliances on Market Outcomes: The Case Studies of the Trans-Atlantic Alliances. Effects of Alliance on Partners' Traffic Routing. Effects of Alliances on Service Quality. Strategic Alliances and Stock Market Reactions. Competition and Liberalization in a Global Airline Industry. Regulatory Issues Concerning International Alliances. Summary and Conclusions. References. Index.