Published at Monday, April 01st, 2019 - 18:19:14 PM. Type of airline. By Amet Franke.
A more recent development is the airline alliance which became prevalent in the late 1990s. These alliances can act as virtual mergers to get around government restrictions. Alliances of airlines such as Star Alliance Oneworld and SkyTeam coordinate their passenger service programs (such as lounges and frequent-flyer programs) offer special interline tickets and often engage in extensive codesharing (sometimes systemwide). These are increasingly integrated business combinations—sometimes including cross-equity arrangements—in which products service standards schedules and airport facilities are standardized and combined for higher efficiency. One of the first airlines to start an alliance with another airline was KLM who partnered with Northwest Airlines. Both airlines later entered the SkyTeam alliance after the fusion of KLM and Air France in 2004.
Often the companies combine IT operations or purchase fuel and aircraft as a bloc to achieve higher bargaining power. However the alliances have been most successful at purchasing invisible supplies and services such as fuel. Airlines usually prefer to purchase items visible to their passengers to differentiate themselves from local competitors. If an airline s main domestic competitor flies Boeing airliners then the airline may prefer to use Airbus aircraft regardless of what the rest of the alliance chooses.
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