STRATEGIC ALLIANCE AND PARTNER AIRLINES' PRODUCTIVITY, MARKET POWER, AND PROFITABILITY

This paper empirically examines the effects of strategic alliances on partner airlines' productivity, output price, and profitability by using panel data consisting of 22 airlines over the 1986-95 period. Strategic alliances are shown to improve partner airlines' total factor productivity. The main sources of the productivity gains are from more efficient use of fuel and materials inputs, and better utilization of capital including aircraft. No evidence was found of increased market power due to a strategic alliance, and there was inconclusive evidence that strategic alliances contributed to an increase in partner airlines' profitability.

• Corporate Authors:

  Canadian Transportation Research Forum

  209-15 Innovation Boulevard
  Saskatoon, Saskatchewan,   Canada 
• Authors:
  • Oum, T H
  • PARK, J H
  • Yu, Chenjie
• Conference:
  • Going Beyond: Moving into the New Millennium
  • Location: Montreal, Canada
  • Date: 1999-5-16 to 1999-5-19
• Publication Date: 1999

Language

• English

Media Info

• Features: References; Tables;
• Pagination: p. 45-58

Subject/Index Terms

• TRT Terms: Airlines; Capital productivity; Fuel conservation; Partnerships; Productivity; Profitability; Strategic alliances
• Subject Areas: Aviation; Economics; Energy;

Filing Info

• Accession Number: 00789381
• Record Type: Publication
• Files: TRIS
• Created Date: Mar 29 2000 12:00AM