Airline Choices for the Future by Kostas Iatrou

By Kostas Iatrou

"Airline offerings for the longer term: From Alliances to Mergers" deals an up to date evaluate of the because it stands at the present time, supplying a accomplished perception into how the area of airline alliances is altering, and the way the merger phenomenon is probably going to slot into the recent situation. the aim of this e-book is twofold. to begin with, it outlines the evolution and the explanations in the back of alliances among overseas schedule carriers, the alliances' music documents and how they've got affected airways and the air shipping undefined. Secondly, drawing on earlier and newer advancements within the undefined, it examines the reviews airways fascinated about cross-border mergers have undergone and the benefits and problems they've got come upon. Alliances and mergers are provided from either the airline and the shopper point of view. The publication presents a balanced account of the place mergers and alliances have taken the thus far, bridging the distance among merger thought and applied practices and techniques. It additionally identifies the demanding situations alliances and cross-border mergers have confronted and highlights the main forces affecting airline improvement. Theoretical proof is supplemented through facts accrued through surveys and interviews with airline executives, aviation specialists, experts and regulatory our bodies.

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2002). As travellers are discovering that real qualitative differences are hard to find on the shorter-haul flights, the borders between ‘no-frills’ carriers and conventional network carriers are being eroded. The key differentiator between LCCs and conventional carriers is their network reach. Since the former do not (yet) offer intercontinental flights, they have mainly influenced competition on flights within a continent or region, on the ‘spokes’ of competing hub-and-spoke systems. Under pressure from LCCs, conventional carriers are now trying to cut their distribution costs by adopting Internet booking and electronic ticketing.

The three European airlines of the initiative were also allies in the Swissair-led Qualiflyer Alliance. The other two allies, TAP Portugal and THY Turkish Airlines, were not invited to participate in Atlantic Excellence because neither Portugal nor Turkey had open skies agreements with the United States. The major benefit of this alliance was its US antitrust immunity and the open skies agreements between the US and the three European nations. The four partners established a revenue pool for traffic crossing the North Atlantic, according to which revenue generated by routes to and from the United States and Zurich, Brussels and Vienna was divided up and shared according to a pre-established formula.

With Swissair going bankrupt in October 2001 and Sabena following suit a month later, the core members of the alliance were grounded and the alliance ceased to exist. It was officially dissolved in February 2002.

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