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Published at Tuesday, April 02nd, 2019 - 09:44:37 AM. Type of airline. By Adelbert Scholz.

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.

Groups such as the International Civil Aviation Organization establish worldwide standards for safety and other vital concerns. Most international air traffic is regulated by bilateral agreements between countries which designate specific carriers to operate on specific routes. The model of such an agreement was the Bermuda Agreement between the US and UK following World War II which designated airports to be used for transatlantic flights and gave each government the authority to nominate carriers to operate routes.



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