Strategic Alliances as a form of Coopetition and its impact on the Performance of Airlines: A Case Study analysis of Lufthansa, Finnair, and Alitalia

The research on coopetition (i.e., simultaneous cooperation and competition) has increased significantly over the last two decades. Noteworthy findings have been made, including the benefits that a firm gains from such a relationship. However, only limited studies centralize the impact on performance through coopetition. Existing studies on coopetition and the effect on performance show mixed outcomes, and researchers claim that the results depend on the firm's industry. Thus, it is relevant to analyze the impact of coopetition on market performance. The following study will examine the aforementioned research gap by looking into the airline industry where coopetition relationship has been practiced in the form of strategic alliances for more than 20 years. The empirical analysis was based on a multiple case study of three airlines, from three different countries, operating in three different alliances. That allowed to investigate similarities and differences among the diverse sized companies in terms of the performance impact. Primary data were collected through semi-structured interviews. Additionally, annual reports were used as secondary data and to enhance credibility through triangulation. Findings show that in general, coopetition through strategic alliances contributes positively to airlines. Nevertheless, the degree of how much airlines benefit from alliances depends on the position in the network and the airline's size. Airlines of small size gain most from the relationship, and airlines with a central position in the alliance give more to the strategic alliances than they get out. The findings reveal that airlines of large size gain less from alliances and increasingly form other types of partnerships like joint ventures that create a more balanced give and gain relationship. Notwithstanding, the COVID epidemic will have a crucial impact on airlines and increase the importance of strategic alliances and partnerships further

Network Structures of Cargo Airlines - An Empirical and a Modelling Approach

The development of efficient air freight networks is an upcoming challenge. The present book approaches this problem for cargo airlines by characterising and classifying their network structures and by developing a model for an airline\u27s strategic network design. The book provides results which are of value for airline professionals (network efficiency analysis), policy makers (policy impact assessment) and researchers (cargo airline network design model)

\u3ci\u3eThe Conference Proceedings of the 1997 Air Transport Research Group (ATRG) of the WCTR Society Vol. 1, No. 3\u3c/i\u3e

UNOAI Report 97-4https://digitalcommons.unomaha.edu/facultybooks/1155/thumbnail.jp

Flag carriers: should we preserve them?

This pedagogical case study is dedicated to show the recent changes in the airline industry, whereby the majority of the so-called ‘flag carriers’ disappeared, either through privatization or bankruptcy. This is due to lack of capacity to adapt to a new environment, by which network carriers and low cost carriers are fighting with continuous cost reduction and business model changes in order to attract more passengers. Recent studies show that the model of low cost carriers is more suitable in the short haul markets, through which carriers can focus on point-topoint execution rather than network fares. Therefore, network carriers are being forced to reevaluate their way of service with a result of a new model adapted from the low cost carriers. The case study will present the incident of Malév, the Hungarian flag carrier, focusing on the steps that lead to bankruptcy, and analysis of the competitors’ strategic movements occurred right after its official stop of operations on February 3rd, 2012.O âmbito deste estudo de caso é mostrar as recentes mudanças no sector da aviação, evidenciadas pelo desaparecimento, por privatização ou falência, da maioria das chamadas ‘companhias de bandeira’. Este facto deve-se à falta de capacidade de adaptação a um novo ambiente, onde as companhias áreas lutam por uma contínua redução de preços e mudanças no modelo de negócio, de modo a atrairem mais passageiros. Estudos recentes demonstram que o modelo de negócio das companhias low cost é mais apropriado para o mercado de curto e médio curso, onde as companhias se podem focar na execução point-to-point ao invés das tarifas de rede. Deste modo, as companhias de rede têm sido forçadas a reavaliarem os serviços oferecidos, adaptando um modelo de negócio semelhante ao das companhias low cost. O caso de estudo apresentará o incidente da companhia área de bandeira húngara Malév, centrado-se no caminho percorrido pela mesma e que a levou à falência, e análise dos posicionamentos estratégicos dos concorrentes, que ocorreram logo após o término oficial das operações, a 3 de Fevereiro de 2012

The Influence of Cross-Cultural Differences on the Interpretation and Understanding of Aircraft Passenger Safety Briefing Cards

Aircraft passenger safety briefing cards are an important part of passenger safety education aboard commercial aircraft. The cards must be understood by all readers, regardless of age, gender, or culture. Related research indicates that passengers from different cultures might misunderstand the highly specialized instructions on safety cards. A self-developed test was administered to 172 students from four cultures (British, French, German, U.S.) at seven universities in five countries. Significant differences (

The Path Dependency of former monopolists A case study of Scandinavian Airlines System

Abstract Title: The Path Dependency of former monopolists Seminar date: 2013-05-30 Course: FEKN90 Företagsekonomi: Examensarbete på Civilekonomprogrammet (30 ECTS) Authors: Niklas Sandberg and Henrik Karlsson Advisor: Matts Kärreman Five key words: Monopolist, Path dependency, Strategy, Competition and Deregulation Purpose: To explain how path dependency is affecting the strategies of former monopolists after that their markets are deregulated. Methodology: For this thesis research we have mainly applied an inductive approach based on a qualitative research method including unstructured interviews. Theoretical Framework: To analyze path dependency from a strategic and industrial perspective Porter’s Diamond, the Path dependency theory, SWOT-analysis and Porter’s Generic Strategies have been selected. These models and theories have been chosen because of their explanatory advantages and inbound relations. Empirical material: The Empirical data primarily comes from five interviews and 20 annual reports. These sources have been presented together in order to provide a covering background for the analysis. Conclusions: This thesis suggests that former monopolists continue to be affected by path dependency after that their markets are deregulated. The structures and strategies of monopolists operating in a regulated market are built on the belief that they are not facing competition. Therefore overall efficiency particularly in terms of cost structure is not emphasized during regulation. Once the market is deregulated new entrants enter with cost structures based on markets with free competition. The new entrants, not being strategically path dependent, may also implement new business models. The former monopolist is challenged by limited strategic space because of its path dependent structure. This limited strategic space caused by path dependency negatively affects its relative competitiveness

Modeling network traffic on a global network-centric system with artificial neural networks

This dissertation proposes a new methodology for modeling and predicting network traffic. It features an adaptive architecture based on artificial neural networks and is especially suited for large-scale, global, network-centric systems. Accurate characterization and prediction of network traffic is essential for network resource sizing and real-time network traffic management. As networks continue to increase in size and complexity, the task has become increasingly difficult and current methodology is not sufficiently adaptable or scaleable. Current methods model network traffic with express mathematical equations which are not easily maintained or adjusted. The accuracy of these models is based on detailed characterization of the traffic stream which is measured at points along the network where the data is often subject to constant variation and rapid evolution. The main contribution of this dissertation is development of a methodology that allows utilization of artificial neural networks with increased capability for adaptation and scalability. Application on an operating global, broadband network, the Connexion by Boeingʼ network, was evaluated to establish feasibility. A simulation model was constructed and testing was conducted with operational scenarios to demonstrate applicability on the case study network and to evaluate improvements in accuracy over existing methods --Abstract, page iii

Passenger recovery after an airport closure at tourist destinations:A case study of Palma de Mallorca Airport

In the context of increased concern about the resilience of critical transport infrastructure to external events and the impact of such events on local tourism industries, this paper analyzes the ability of tourism-oriented airports to relocate departing passengers in the event of an unexpected airport closure. A case study of Palma de Mallorca airport is presented. Using an MIDT dataset on passenger itineraries in August 2014, several closure scenarios are simulated, and disrupted passengers are relocated to minimum-delay itineraries. Aggregate delays and relocation rates are used to assess the impact of each scenario, with a particular focus on UK and Germany markets. The results provide useful benchmarks for the development of policies aimed at minimizing the impact on stranded tourists, such as allowing for passenger connections, establishing a protocol for interline cooperation, and improving intermodal transfers. These measures will help mitigate the negative impacts on airline loyalty and destination image