Business Case Studies, Strategic Alliances, Collaboration and Joint Ventures Case Study, Transnational Alliances in Civil Aviation

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Strategic Alliances, Collaboration and Joint Ventures Case Study

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Case Title:

Transnational Alliances in Civil Aviation

Publication Year : 2004

Authors: G Saradhi Kumar, Sumit Kumar Chaudhuri

Industry: Transportation

Region:USA Europe

Case Code: SCJ0001

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Since its inception as a means of mass transport in the 1940s, the civil aviation industry worldwide has always been under stringent government regulations. Due to the fragmentation of the industry, it suffered from operational inefficiencies, financial losses and poor customer services. This led to changes in business models of the industry from time to time – deregulations in domestic aviation in many countries followed by strategic international alliances between major airlines of different nations. In September 2003, a new business model emerged when KLM (Royal Dutch Airlines) merged with Air France to mark the first merger of two national flagship carriers.

Pedagogical Objectives:

  • To highlight the need for change in the business model of the civil aviation industry
  • To discuss the significance and effects of the new model.

Keywords : Aviation alliances; Mergers in aviation industry; Regulations on airlines; Chicago convention, 1944; KLM-Air France merger; Code sharing agreements in aviation industry; First transatlantic alliance, 1993; SkyTeam; Hub and spoke system; Deregulations in the airline industry; Strategic alliances between airlines; Industry Analysis Case Study; Open skies; Aviation networks; Aviation industry after September 11 2001; Consolidation of the aviation industry

Contents : 
Aviation : A regulated industry
Deregulations in the U.S. Aviation Industry
KLM-Air France merger
Future outlook
Hub and spoke system

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