2016

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Study of Airline Alliances and their benefits in Creating Airline Profitability
(UMT, Lahore, 2016) Hammad Saeed Malik
Competitions in the airline industry increased drastically after the deregulation. Airlines could now operate on the routes which they were not previously able to operate on (Mockler 1997, Pg. #317). Since the 1990s, aircraft organizations have thought about how possible it is of shaping alliance. Right now the three fundamental alliances Oneworld, Sky Team, and Star Alliance represent more than 66% of industry limit (Gaggero and Bartolini 2012, pg#400). Major structural changes are going on in the world Aviation industry. Many passengers prefer to fly with those airlines that have extensive and complex network of routes. This choice by passengers has forced airlines to establish more networks so that they can attract more passengers in the growing market competition (Park 1997, pg#181). Airline alliance marketing has two popular types, the one is code sharing (an airline is able to offer flights to its passengers to routes on which the airline does not operate itself) and the other is frequent flyer program (helps airlines to retain customers by offering them rewards on the miles they travel) (Mockler 1997, Pg #257).