GLOBAL AIRLINE ALLIANCES (GALs) ANALYSIS AND AIRLINES NETWORK DEVOLOPMENT ABSTRACT Since the mid of 1990s, worldwide airlines have been enrolling in one of the three current and largest global airline alliances (GALs), STAR ALLIANCE is the very first airline alliance founded in 1997, then it was followed by ONEWORLD alliance in 1999, and SKYTEAM in the year 2000, during the expansion of these GALs, airlines from different contents started belonging in to join, GALs provided transportation for over two-thirds of all international traffic. This research studies the reasons that cause airlines to join collaborative scheme as a way for network development and to increase profitability by connecting the international traffic. The evolution of
The jumbo aircraft has the capability to fly over 8000 nautical miles without refueling, making it the ideal choice for long-distance flights (Pitt, Koufopolulos,2012). Consequently, the European labor laws offer multiple disadvantages such as high cost and regulation, non-mobile workforces and a lethargic economy regionally (Gordon,2014). According to the World Economic Forum, the European Union was disappointing compared to the other advance companies in three main components: innovation, higher education and training and the creation of an efficient labor market leaving the company open to being overtaken by its competition (Gordon,2014). In 2017 Airbus created 718 aircraft, a 4 percent increase from 2016, but has a backlog of order over a $1 trillion
The initiative towards organizational change has brought a significant impact on the organization’s success. The flexible organizational structure can only develop when there is high concern for the employees and the bureaucratic structure is replaced with the laissez-faire. It is true that Etihad Airways achieve its long term organizational success through its employees. The organizational structure is based on the inverted organizational pyramid where top down structure was inverted. The employees were given power to lead themselves, their performance as well as the managers.
the composition of firms. The weight of the analysis will be on the main phases of economic integration, meaning the way the European air transport market has developed and what effects and consequences followed by this. The second part of the paper will address the how the current and long-term EU socio‐economic trends as well as the regulatory regime will affect the industry and the case-in-point will be the German company, Lufthansa. Lufthansa is reviewed as a case study of a major international player integrating into an ever-changing air transport market facing fierce competition. When performing the analysis, the analytical framework presented in the Sanchez and Heene textbook will be utilized and applied.
Higher costs inevitably lead to higher prices for airline passengers. Aviation is vital part of the United Kingdom. It is not only crucial in sponsoring almost 1 million jobs and £50 billion of GDP, providing around £8.7 billion in taxes to the Treasury of the country, but aviation is also fundamental to the success of economic benefits from air transport in the United Kingdom (Roberts-Hughes, 2014). Aviation supports exports, services, manufacturing, foreign direct investment and of course tourism. This sector gives us opportunity for the holidays and visits of family and friend in different parts of a country and also around the world.
Airport and airline relationship of Etihad Airways Etihad Airways is committed to the growth strategy of cooperation to get the scale needed to compete in the global air transport market. Beyond organic developments, the airline has a strong base of code-share partners, offers access to hundreds of destinations that are not served by its own aircraft. In 2013, Etihad Airways has signed a new code-sharing agreements with seven airlines - South African Airways, Kenya Airways, Air Canada, Korean Air, Air Serbia, Belavia and airBaltic. Code-sharing refers to a practice where a flight operated by one airline is jointly marketed as a flight for one or more other airlines. This addition takes the number of code-sharing partnership to 47 by the end
They were implemented to provide guidance for organizational activities. While most industries, including that of the airport, were not susceptible to them at first, they have come to realize the importance of implementing these concepts (Netmba.com, n.d.). To effectively manage and operate an airport, managers have to implement various marketing concepts in order to develop strong lasting connections, attract passengers and businesses and to keep existing clients around. In earlier years airport marketing was centralized around airlines; however, there has been a drastic shift and the attention is now geared towards airport consumers, otherwise known as passengers (Kramer, 2010). This is due to the implementation of concepts such as the Production Concept, the Product Concept, the Selling Concept, the Marketing Concept and lastly, the Societal Marketing Concept (Kotler 2000, cited in Www2.nau.edu,
The most fundamental of these implications is the fact that increased travel is both a reason for and the result of, the global lifestyle (WTO, 1990). On top of the deregulation of the airline industry, Morley (2005) proposes that the forces driving globalisation are one of the primary reasons for these strategic alliance arrangements forming in the airline industry. As the travel market is becoming more and more volatile, with more consumer demand and competition reaching an all-time high on a global scale - airlines have had to establish away to reach more distances to meet the demands, and still remain dominant in the market – through network alliances. The joint development of these networks permits globalisation and speeds up the rate of expansion and supply of services (Ullrich,
As the airline industry is particularly expanding and exceptionally contenders thus, there are numerous piece of the pie in the business. Additionally, the carrier business is influenced by the ecological (e.g. political, money matters and so forth.) that diminishing the quantity of travelers. Right now, there are numerous reasons, which have an impact on the air transport industry to focused among industry, such a variety of carrier organizations need have created their systems to be all the more viably so as to lead the business zone.
An airline also provides air transport services for traveling passengers and freight (cargo). Airlines may lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit. Generally, airline companies are recognized with an air operator certificate (AOC) or license issued by a state CAA before they can be able to commence business. The conditions for issuance of the AOC are designed in such a manner that the airline has to prove compliance with laid down procedures and regulations with emphasis on aviation safety. There are different types of airlines and can vary from those operating a single aircraft carrying mail or cargo, to the large international airlines operating hundreds of aircraft.