The Price Effects of International Airline Alliances

2000 ◽  
Vol 43 (2) ◽  
pp. 503-546 ◽  
Author(s):  
Jan K. Brueckner ◽  
W. Tom Whalen
Keyword(s):  
Airline Alliances ◽  
Price Effects ◽  
International Airline

scholarly journals Price effects of airline alliances: design and modelling

2013 ◽  
Vol 7 (2) ◽  
pp. 253-267
Author(s):  
Cayami S. C. Cavalcante
Keyword(s):  
Comparative Literature ◽  
Literature Review ◽  
Boundary Conditions ◽  
Allocative Efficiency ◽  
Price Setting ◽  
Positive Effects ◽  
Airline Alliances ◽  
Price Effects ◽  
The Subject ◽  
International Airline

This paper performs a comparative literature review of different approaches to explain the effects of international airline alliances on fares. Authors develop different models adopting their own simplifications and boundary conditions. In the models effects of cooperative price setting are shown to have positive effects for consumers. With the improvement of services, consumers may be willing to pay a premium, which can outweigh to positive effects of allocative efficiency. In non-cooperative pricing conditions, both airlines and passengers do not reap the full benefits possible from the system. The loss of competition however always results in an increase on fares. By studying the repertoire on airline alliances it is possible to advance a comprehensive view on the subject.

scholarly journals Product Quality Effects of International Airline Alliances, Antitrust Immunity, and Domestic Mergers

2015 ◽  
Vol 14 (1) ◽  
Author(s):  
Philip G. Gayle ◽  
Tyson Thomas
Keyword(s):  
Product Quality ◽  
Air Travel ◽  
Airline Alliances ◽  
International Alliances ◽  
Welfare Evaluation ◽  
Price Effects ◽  
International Airline ◽  
Antitrust Immunity ◽  
Domestic Mergers

AbstractMuch of the literature on airline cooperation focuses on the price effects of cooperation. A key contribution of our paper is to empirically examine the product quality effects of airline cooperation. Two common types of cooperation among airlines involve international alliances and antitrust immunity (ATI), where ATI allows for more extensive cooperation. Additionally, this paper examines the extent to which domestic mergers affect the quality of international air travel products. The results suggest that increases in the membership of a carrier’s alliance or ATI partners and domestic mergers are associated with the carrier’s own products having more travel-convenient routing quality. Therefore, a complete welfare evaluation of airline cooperation and mergers should not ignore product quality effects.

scholarly journals Competitive Advantages of International Airline Alliances: A Critical Review

2020 ◽  
Vol 11 (1) ◽  
pp. 139-145
Author(s):  
Gang-Hoon Seo
Keyword(s):  
Literature Review ◽  
Critical Review ◽  
Competitive Advantages ◽  
The Past ◽  
Airline Alliances ◽  
International Alliances ◽  
International Alliance ◽  
The Future ◽  
International Airline ◽  
Critical Literature

AbstractOver the past several decades, airlines have formed and participated in international alliances to seek competitive advantages. However, it is still unclear whether airlines obtain substantial competitive advantages through an international alliance and how to measure the competitive advantages of alliances and airlines. This study presents a critical literature review as a contribution to comprehensive and novel empirical researches in the future.

Wettbewerbsprobleme durch Luftverkehrsallianzen - Marktöffnung ist vordringlich

2000 ◽  
Vol 49 (2) ◽  
Author(s):  
Frank Fichert
Keyword(s):  
Predatory Behavior ◽  
Allocation Mechanism ◽  
Airline Alliances ◽  
Airline Markets ◽  
Alliance Partners ◽  
International Airline

AbstractThe formation of international Airline Alliances can be beneficial to consumers but might also restrict competition in some markets, especially between hub-airports of the Alliance-partners. Competition authorities try to safeguard rivalry, e.g. by restricting the use of frequent-flier programs and by prohibiting predatory behavior. In this paper it is shown that a further opening of airline markets is inevitable. Restrictive bilateral aviation agreements should be replaced by open-skies agreements or a liberal agreement on a multilateral base. Also the “grandfathering” of slots has to be abolished and a market-based allocation mechanism should be established.

scholarly journals A Content Analysis of International Airline Alliances Mission Statements

2020 ◽  
Vol 11 (1) ◽  
pp. 89-105 ◽  
Author(s):  
Gang-Hoon Seo
Keyword(s):  
Practical Implication ◽  
Mission Statements ◽  
Theoretical Implication ◽  
Primary Component ◽  
Chi Square ◽  
Value Sharing ◽  
Airline Alliances ◽  
Post Hoc ◽  
International Airline ◽  
Organizational Value

AbstractBackground: Mission statements have come to play an important role as tools for organizational value sharing.Objectives: This study aims to shed light on what types of values are highlighted in international airline alliance members’ mission statements, and whether there are significant differences or not.Methods/Approach: Quantitative content analyses have been conducted with the goal to investigate mission statements of 61 members of international airline alliances: Star Alliance, SkyTeam, and oneworld.Results: Frequency test outcomes reveal that “philosophy”, “self-concept” and “location” are the predominant components in oneworld, “philosophy” is the primary component in SkyTeam, and “philosophy” and “customer” are the focal components of Star Alliance. According to chi-square tests, Star Alliance members emphasize “customer” more often than others do, and oneworld members highlight “profitability” more often. One-way Anova tests with a post hoc analysis reveal that Star Alliance members cover more components than SkyTeam.Conclusions: The theoretical implication of these findings is that they reveal the existence of unique values among international airline alliances members offering a competitive advantage. As a practical implication, these findings will be helpful for international airline alliances and airline managers for comparative purposes.

Impacts of International Airline Alliances on Tourism

2003 ◽  
Vol 9 (1) ◽  
pp. 31-51 ◽  
Author(s):  
Clive L. Morley
Keyword(s):  
Cost Savings ◽  
Operating Costs ◽  
Economic Evidence ◽  
Costs And Benefits ◽  
Full Extent ◽  
Airline Alliances ◽  
International Airline

International airline alliances have the effect of improving the efficiency and services of airlines, by, for example, lowering operating costs and making connections easier. They can thus lead to important pay-offs for tourists in terms of service improvements and lower fares. There is, however, a danger of alliances reducing competition, leading to increases in fares. The net balance of costs and benefits to tourists is dynamic, partially unquantified, and not as certain as some studies conclude. There is some economic evidence that, generally, air fares fall as a consequence of alliances, but perhaps not by the full extent of the realized cost savings. At the same time, alliances between formerly competing airlines on a route reduce competition, resulting in fewer flight services and higher fares.

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