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Published at Friday, March 29th, 2019 - 12:05:20 PM. Type of airline. By Adeline Winkler.

In view of the congestion apparent at many international airports the ownership of slots at certain airports (the right to take-off or land an aircraft at a particular time of day or night) has become a significant tradable asset for many airlines. Clearly take-off slots at popular times of the day can be critical in attracting the more profitable business traveler to a given airline s flight and in establishing a competitive advantage against a competing airline.

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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