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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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    1. Rhoades, Dawna L. & Lush, Heather, 1997. "A typology of strategic alliances in the airline industry: Propositions for stability and duration," Journal of Air Transport Management, Elsevier, vol. 3(3), pages 109-114.
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    7. Gudmundsson, Sveinn Vidar & de Boer, Evert R & Lechner, Christian, 2002. "Integrating frequent flyer programs in multilateral airline alliances," Journal of Air Transport Management, Elsevier, vol. 8(6), pages 409-417.
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    Cited by:

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    2. Farooq, Muhammad Shoaib & Salam, Maimoona & Fayolle, Alain & Jaafar, Norizan & Ayupp, Kartinah, 2018. "Impact of service quality on customer satisfaction in Malaysia airlines: A PLS-SEM approach," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 169-180.
    3. 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.
    4. Piotr Niewiadomski, 2013. "International airline groups in Africa," Global Development Institute Working Paper Series ctg-2013-36, GDI, The University of Manchester.
    5. 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.
    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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