STRATEGIC ALLIANCES AMONG INTERNATIONAL AIRLINES AND THEIR IMPLICATIONS FOR ORGANIZATIONAL CHANGE

Globalization is an inevitable path for many types of organizations as they strive to attain and defend competitive advantage and strategic alliances are a necessary part of this process. Cooperative behavior and simultaneous competition in several continental markets is not a new phenomenon in aviation, but the current popularity of alliances among the major carriers has been interpreted as a form of globalization. A common assumption is that these alliances present ways for the airlines to circumvent the restrictions present in the regulatory framework. This paper argues that globalization, as it is more widely understood in modern management, involves much more than the development of an all-encompassing network. Exploitation of the benefits of globalization requires a change in thinking about the relationships within and between organizations. Strategic alliances have many advantages over mergers and acquisitions in this contact. The paper argues that most of the current airline alliances are follow organization, but that genuine strategic alliances are likely to be formed in more competitive conditions. These genuine strategic alliances can deliver benefits to the industry and its customers, but policy makers recognize the growing complexity of new forms of organizations in the airline industry.

Language

  • English

Media Info

  • Features: References;
  • Pagination: p. 167-180

Subject/Index Terms

Filing Info

  • Accession Number: 00783931
  • Record Type: Publication
  • ISBN: 0080435904
  • Report/Paper Numbers: Volume 1
  • Files: TRIS
  • Created Date: Feb 7 2000 12:00AM