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The Determinants of Airline Alliances

  • Alberto A. Gaggero
  • David Bartolini

In this paper we conduct an empirical investigation of the determinants of airline alliances. The results of the analysis show that well-established airlines with large passenger volume are more likely to participate in an alliance, and are essential for its sustainability. In line with these findings, older airlines have a higher probability of being part of an alliance. Moreover, the decision to join or form an alliance is fostered by the aggregate market share of the alliances. Interestingly, our analysis suggests that the airline's main decision is not to choose a specific alliance, but whether to join or form an alliance at all. © 2012 LSE and the University of Bath

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Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy (JTEP).

Volume (Year): 46 (2012)
Issue (Month): 3 (September)
Pages: 399-414

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Handle: RePEc:tpe:jtecpo:v:46:y:2012:i:3:p:399-414
Contact details of provider: Web page: http://www.bath.ac.uk/e-journals/jtep

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