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Airline alliances: cooperating to compete?

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  • Burton, John
  • Hanlon, Pat

Abstract

This paper examines the formation of alliances in the contemporary airline industry, comparing this with developments in business collaboration in industry generally. It identifies the main forces driving airlines into alliances, before considering the strategies that airlines are adopting in marketing joint services, and the policies that governments are pursuing in relation to the impact of alliances on the intensity of competition. One of the main arguments advanced is that alliances increase competition in through-markets via hubs, and that they can be expected to have pro-competitive effects in narrowing price-cost margins on long-haul services, something that can be traded against any lessening of competition in short-haul hub-to-hub markets.

Suggested Citation

  • Burton, John & Hanlon, Pat, 1994. "Airline alliances: cooperating to compete?," Journal of Air Transport Management, Elsevier, vol. 1(4), pages 209-227.
    • Handle: RePEc:eee:jaitra:v:1:y:1994:i:4:p:209-227
    DOI: 10.1016/0969-6997(94)90013-2
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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. Manuela Jr., Wilfred S. & Rhoades, Dawna L. & Curtis, Tamilla, 2019. "Market power at the Seattle-Tacoma International Airport: The case of Alaska Airlines," Transport Policy, Elsevier, vol. 76(C), pages 90-99.
    3. Dennis, Nigel, 2000. "Scheduling issues and network strategies for international airline alliances," Journal of Air Transport Management, Elsevier, vol. 6(2), pages 75-85.
    4. Never, Jan & Suau-Sanchez, Pere, 2020. "Challenging the interline and codeshare legacy: Drivers and barriers for airline adoption of airport facilitated inter-airline network connectivity schemes," Research in Transportation Economics, Elsevier, vol. 79(C).
    5. Goel, A., 2003. "Strategic Alliances in the Global Airline Industry," IIMA Working Papers WP2003-01-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    6. Lu, Jin-Long & Yang, Chih-Wen, 2022. "Good or bad? Passenger feelings regarding code-share alliances among airlines," Journal of Air Transport Management, Elsevier, vol. 103(C).

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