Purpose: The paper proposes a research method for measuring strategic interactions between airline joint-venture alliances that compete with each other. Design/Methodology/Approach: proposed is based on the non-cooperative game theory Nash-Cournot equilibrium. It consists in development of model compares economic performance long-haul, intercontinental operations two consecutive scenarios, befo...

This article examines the development of strategic alliances in airline industry through participation Koninklijke Luchtvaart Maatschappij (hereafter KLM) a joint venture with Kenya Airways KQ). Based on literature knowledge transfer international business and organization studies, study focuses evolution cooperation between both partners over time, from capital seeking to marketing, legitimacy...

The extant literature proposes an option-based hedging mechanism for airlines in a parallel alliance to transfer bumped passengers their partner's flight. This paper extends this by conducting strategic analyses and developing two-stage simulation-based algorithm identify the best strategy applying mechanism. Specifically, refers number of options allied carriers transact. authors show that the...

Freedom in the airline industry coupled with deregulation has created variation fares response to demand, by challenging and ever-changing competitive environment leading entry of many airlines industry. However, have been met challenges remain operational Airlines changed their dynamics operation counter network carriers forming strategic alliances, which become a powerful tool for these airli...

Airline alliances have a long history yet there is no academic consensus on how they affect price levels and their impact dispersion has not been studied. We address this question using novel methodology motivated by the service homogenization increased competition in industry recent years. Establishing an equivalence between online sales process reverse English auction, we use methods from auc...