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Key aspects of global strategic alliances and the impacts on the future of Canadian airline industry

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  • Oum, Tae Hoon
  • Zhang, Anming

Abstract

This paper summarizes main research results concerning global airline alliances and investigates the potential roles of Air Canada and other Canadian air carriers in the increasingly powerful global alliance networks. After describing the history, status and prospect of global alliance networks, the paper discusses the effects of alliances on productivity, pricing and profitability of partner carriers. It then discusses the effects of alliances on partners’ output, service frequency and consumer welfare, and the effects of global alliance networks on inter-continental traffic routing patterns as well as on traffic routing patterns in North America. Applying alliance research results, we investigate the roles of Air Canada and other Canadian carriers in North America and in global alliance networks. Finally, regulatory issues concerning international alliances are discussed.

Suggested Citation

  • Oum, Tae Hoon & Zhang, Anming, 2001. "Key aspects of global strategic alliances and the impacts on the future of Canadian airline industry," Journal of Air Transport Management, Elsevier, vol. 7(5), pages 287-301.
    • Handle: RePEc:eee:jaitra:v:7:y:2001:i:5:p:287-301
    DOI: 10.1016/S0969-6997(01)00023-0
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    References listed on IDEAS

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    1. Button, Kenneth & Oum, Tae Hoon, 1997. "Airline alliances and open skies transport," Journal of Air Transport Management, Elsevier, vol. 3(3), pages 107-107.
    2. Brueckner, Jan K & Whalen, W Tom, 2000. "The Price Effects of International Airline Alliances," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 503-545, October.
    3. Douglas, George W & Miller, James C, III, 1974. "Quality Competition, Industry Equilibrium, and Efficiency in the Price-Constrained Airline Market," American Economic Review, American Economic Association, vol. 64(4), pages 657-669, September.
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    Cited by:

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    2. Siew Yean Tham, 2010. "ASEAN Open Skies and the Implications for Airport Development Strategy in Malaysia," Working Papers id:3093, eSocialSciences.
    3. Kottas, Angelos T. & Madas, Michael A., 2018. "Comparative efficiency analysis of major international airlines using Data Envelopment Analysis: Exploring effects of alliance membership and other operational efficiency determinants," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 1-17.
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    5. 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.
    6. Zhang, Yahua & Sampaio, Breno & Fu, Xiaowen & Huang, Zhibin, 2018. "Pricing dynamics between airline groups with dual-brand services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 112(C), pages 46-59.
    7. Choi, Jong Hae & Wang, Kun & Xia, Wenyi & Zhang, Anming, 2019. "Determining factors of air passengers’ transfer airport choice in the Southeast Asia – North America market: Managerial and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 203-216.
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    9. Büyüközkan, Gülçin & Feyzioglu, Orhan & Nebol, Erdal, 2008. "Selection of the strategic alliance partner in logistics value chain," International Journal of Production Economics, Elsevier, vol. 113(1), pages 148-158, May.
    10. Wong, W.H. & Cheung, Tommy & Zhang, Anming & Wang, Yue, 2019. "Is spatial dispersal the dominant trend in air transport development? A global analysis for 2006–2015," Journal of Air Transport Management, Elsevier, vol. 74(C), pages 1-12.

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