A GEOGRAPHICAL PERSPECTIVE TO ALLIANCE NETWORKS IN THE AIRLINE INDUSTRY

摘要

One motive for building airline alliances is the goal of a seamless network of flights that isrntoday demanded by customers. This study explores the seamlessness of multilateral airlinernalliance from a geographical perspective. A theoretical base is constructed using the alliancerntheory and the network theory. It is suggested that both viewpoints are essential in explainingrnthe conceptual and dynamic factors related to the airline industry.rnThe key elements discussed in this paper are a) the multilateral airline alliance as a networkrnthat generates competitive advantage by creating a network product, and b) achieving thisrnadvantage through careful partner selection and partner evolution. The primary objective ofrnthe paper is to present a model which illustrates geographical composition and key variablesrnof global airline alliances in the framework of firms' strategies. Geographical InformationrnSystems (GIS) and a database of over 15 000 weekly flights were used to draw maps thatrndepict alliance composition from a geographical point of view. A secondary objective is tornpresent criteria through which potential and existing alliance members could be assessed.rnFindings suggest that even though alliances do strive for geographical seamlessness, the corernalliances can be seen as aiming for more scope than for density. Airlines participating in arnglobal alliance need bilateral contracts with other airlines to provide seamless service, evenrnwith airlines that are members in a competing alliance. It can also be suggested that thernnumber of airlines participating in the core alliance is not the primary driver, but it is therngeographical disparity that builds an optimal network.