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The effect of strategic alliance on performance

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  • Park, Namgyoo K.
  • Cho, Dong-Sung

Abstract

This study investigates codesharing alliances to see if they increase market shares of the carriers involved by analyzing a time-series data of 56 airlines over the 1986–1993 period. Our empirical results indicate: (a) codesharing, in fact, increases the carriers' market shares; (b) codesharings between existing airlines increase market shares less than those between relatively new carriers; and (c) the market-share-increasing effect of codesharing alliance is higher in markets with fewer competing carriers.

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  • Park, Namgyoo K. & Cho, Dong-Sung, 1997. "The effect of strategic alliance on performance," Journal of Air Transport Management, Elsevier, vol. 3(3), pages 155-164.
    • Handle: RePEc:eee:jaitra:v:3:y:1997:i:3:p:155-164
    DOI: 10.1016/S0969-6997(97)00026-4
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    3. Peng, I-Chin & Lu, Hua-An, 2022. "Coopetition effects among global airline alliances for selected Asian airports," Journal of Air Transport Management, Elsevier, vol. 101(C).
    4. Thanh Ngo & Kan Wai Hong Tsui, 2022. "Estimating the confidence intervals for DEA efficiency scores of Asia-Pacific airlines," Operational Research, Springer, vol. 22(4), pages 3411-3434, September.
    5. KİRACI Kasim & BAKIR Mahmut, 2020. "Evaluation Of Airlines Performance Using An Integrated Critic And Codas Methodology: The Case Of Star Alliance Member Airlines," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 15(1), pages 83-99, April.
    6. Kleymann, Birgit & Seristö, Hannu, 2001. "Levels of airline alliance membership: balancing risks and benefits," Journal of Air Transport Management, Elsevier, vol. 7(5), pages 303-310.
    7. Saci, Fateh & Jasimuddin, Sajjad M., 2018. "Does strategic partnership matter to create value of a firm? An empirical study based on SBF 250 French firms," Research in International Business and Finance, Elsevier, vol. 46(C), pages 65-76.
    8. Cobeña, Mar & Gallego, à ngeles & Casanueva, Cristóbal, 2019. "Diversity in airline alliance portfolio configuration," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 16-26.
    9. Belén Payán-Sánchez & Miguel Pérez-Valls & José Antonio Plaza-Úbeda, 2019. "The Contribution of Global Alliances to Airlines’ Environmental Performance," Sustainability, MDPI, vol. 11(17), pages 1-16, August.
    10. Suen, Wilma W, 2002. "Alliance strategy and the fall of Swissair," Journal of Air Transport Management, Elsevier, vol. 8(5), pages 355-363.
    11. Agusdinata, Buyung & de Klein, Wouter, 2002. "The dynamics of airline alliances," Journal of Air Transport Management, Elsevier, vol. 8(4), pages 201-211.
    12. Yu, Ming-Miin & Chen, Li-Hsueh & Chiang, Hui, 2017. "The effects of alliances and size on airlines’ dynamic operational performance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 197-214.
    13. Fateh Saci & Boualem Aliouat, 2014. "La création de valeur boursière des partenariats stratégiques et des fusions-acquisitions " Cas des sociétés du SBF 250 "," Working Papers halshs-01068790, HAL.
    14. Clive L. Morley, 2003. "Impacts of International Airline Alliances on Tourism," Tourism Economics, , vol. 9(1), pages 31-51, March.
    15. Zou, Li & Chen, Xueqian, 2017. "The effect of code-sharing alliances on airline profitability," Journal of Air Transport Management, Elsevier, vol. 58(C), pages 50-57.
    16. Fateh Saci & Boualem Aliouat, 2014. "Do strategic partnerships create value? "The empirical case of SBF 250 firms"," Post-Print halshs-01068783, HAL.
    17. Yen, Barbara T.H. & Li, Jun-Sheng, 2022. "Route-based performance evaluation for airlines – A metafrontier data envelopment analysis approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).

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