Distinct features of lasting and non-lasting airline alliances |
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| Institution: | 1. Department of Mechanical and Aerospace Engineering (DIMEAS), Politecnico di Torino, Corso Duca degli Abruzzi 24, Turin 10129, Italy;2. European Space Agency (ESA), Technical Centre ESTEC, Keplerlaan 1, 2200 AG, Noordwijk ZH, The Netherlands;1. Escola de Ciências e Tecnologia, Universidade Federal do Rio Grande do Norte, Caixa Postal 1524, Natal 59072-970, RN, Brazil;2. Institute for Biodiversity and Ecosystem Dynamics, University of Amsterdam, Science Park 904, 1098 XH Amsterdam, The Netherlands;3. Departamento de Engenharia Biomedica, Universidade Federal do Rio Grande do Norte, Av. Senador Salgado Filho, 300, Natal, 59078-970, RN, Brazil;4. Edmond and Lily Safra International Neuroscience Institute, Santos Dumont Institute, Av Santos Dumont, 1560, Macaiba, 59280-000, RN, Brazil |
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| Abstract: | This paper seeks to uncover key differences between lasting and discontinued airline alliances by applying factor analysis. Several meaningful patterns emerge. First, alliances aiming at customer loyalty and operations integration are more likely to be long lasting. Second, bilateral code-sharing with serious financial tie-up through pooling agreement on revenue/costs is another distinct feature of lasting alliances. Third, the leading cause for alliance termination is expansion into non-core and non-customer-oriented activities. Finally, alliances engaging solely in code-sharing, joint operations, or joint marketing without other substantial commitment are likely to fail or only be short term. The paper concludes with a validation of key findings using logistic regression. |
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