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Multilateral airline alliances: Balancing strategic constraints and opportunities

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  • Gudmundsson, Sveinn Vidar
  • Lechner, Christian

Abstract

This paper explores multilateral airline alliances through the lenses of structural holes and network closure. The structural holes theory sees network ties as opportunities linking together separate network segments through brokers and weak ties. The opposing view argues that network closure would generate superior “social capital†and thus superior “economic rent†as we would have more trust, reputation and cooperation within a closed group with strong internal ties. We discuss these theories in the context of multilateral airline alliances and argue that the two concepts in combination advance our ability to explain alliance processes in the airline industry.

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  • Gudmundsson, Sveinn Vidar & Lechner, Christian, 2006. "Multilateral airline alliances: Balancing strategic constraints and opportunities," Journal of Air Transport Management, Elsevier, vol. 12(3), pages 153-158.
    • Handle: RePEc:eee:jaitra:v:12:y:2006:i:3:p:153-158
    DOI: 10.1016/j.jairtraman.2005.11.007
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    References listed on IDEAS

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    Cited by:

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    2. Wu, Cheng-Lung & Lee, Andy, 2014. "The impact of airline alliance terminal co-location on airport operations and terminal development," Journal of Air Transport Management, Elsevier, vol. 36(C), pages 69-77.
    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. 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.
    5. Piotr Niewiadomski, 2013. "International airline groups in Africa," Global Development Institute Working Paper Series ctg-2013-36, GDI, The University of Manchester.
    6. Heshmati, Almas & C. Kumbhakar, Subal & Kim, Jungsuk, 2016. "Persistent and Transient Efficiency of International Airlines," Working Paper Series in Economics and Institutions of Innovation 444, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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