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Levels of airline alliance membership: balancing risks and benefits

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  • Kleymann, Birgit
  • Seristö, Hannu

Abstract

This article relates the risks and benefits of alliancing to different levels of alliance integration. The trade-off between alliance benefits reaped and risk levels inherent in the tightness of integration into the alliance as well as mechanisms to dampen the potentially detrimental effects of high levels of risk are discussed. It is suggested that risk in itself does not necessarily carry negative consequences; based on findings from organisation theory research, the role of inherently risky alliance-specific investments as both a generator of efficiency and as a facilitator of trust within the alliance is described.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jaitra:v:7:y:2001:i:5:p:303-310
    DOI: 10.1016/S0969-6997(01)00025-4
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    References listed on IDEAS

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    Cited by:

    1. Tsai, Dungchun & Chang, Shaochi & Chen, WeiWei & Tran, Chau-lan, 2008. "The market valuation of new route announcements," Journal of Air Transport Management, Elsevier, vol. 14(5), pages 252-256.
    2. Ulrich Wassmer & Sali Li & Anoop Madhok, 2017. "Resource ambidexterity through alliance portfolios and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 38(2), pages 384-394, February.
    3. Min, Hokey & Joo, Seong-Jong, 2016. "A comparative performance analysis of airline strategic alliances using data envelopment analysis," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 99-110.
    4. Veysi ASKER & Temel Caner USTAÖMER, 2022. "Financial Efficiency Analysis the Malmquist TFP Method An Application on Star Alliance Member Airlines," Bingol University Journal of Economics and Administrative Sciences, Bingol University, Faculty of Economics and Administrative Sciences, vol. 6(2), pages 39-57, December.
    5. Li, Ye & Cui, Qiang, 2018. "Investigating the role of cooperation in the GHG abatement costs of airlines under CNG2020 strategy via a DEA cross PAC model," Energy, Elsevier, vol. 161(C), pages 725-736.
    6. Seo Gang-Hoon, 2020. "A Content Analysis of International Airline Alliances Mission Statements," Business Systems Research, Sciendo, vol. 11(1), pages 89-105, March.
    7. 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.
    8. Kleymann, Birgit, 2005. "The dynamics of multilateral allying: a process perspective on airline alliances," Journal of Air Transport Management, Elsevier, vol. 11(3), pages 135-147.
    9. Klophaus, Richard & Lordan, Oriol, 2018. "Codesharing network vulnerability of global airline alliances," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 1-10.
    10. Kilpi, Jani & Vepsäläinen, Ari P.J., 2004. "Pooling of spare components between airlines," Journal of Air Transport Management, Elsevier, vol. 10(2), pages 137-146.
    11. 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.

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