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Essay / Discussion around global alliances operating in...
The international aviation industry is arguably one of the most competitive and cutthroat businesses in the world today. Characterized by high revenues but notoriously low profit margins, modern international airlines are constantly looking for methods to gain advantages over competitors and attract new customers. One such method that has become popular since the late 1990s is the global airline alliance. There are three major alliances in operation today, each bringing together different member airlines. These alliances offer airline customers various advantages over traveling with a traditional carrier. Nonetheless, these benefits have been criticized by some as anti-competitive. There are several examples of airlines that prefer to remain non-aligned and have enjoyed enormous success. Who are these alliances, why are they so popular and why are they so heavily criticized by some? The Star Alliance was founded in May 1997 by five airlines from three different continents and is today the largest and most ancient of the three great alliances of the world. operation today. Among all alliances, it has the largest number of member airlines, as well as the largest number of flights and destinations served (Star Alliance, 2011). It is also independently ranked by Skytrax (2011) as the best airline alliance in the world, having further won this award every year it has been awarded, with the exception of 2010, where the award went to Oneworld. Additionally, Star Alliance is probably most useful for frequent travelers based in New Zealand, as New Zealand's main airline, Air New Zealand, is a member. Air New Zealand frequent flyers can make the most of coordinated schedules, frequent flyer points and international destinations...... middle of paper ......dfO'Sullivan, M. (2010, September 17 ). Virgin hints at signing up for Skyteam. The Sydney Morning Herald, p. 3.Oneworld company. (2011). An introduction to Oneworld: The alliance that revolves around you. Retrieved September 17, 2011 from http://www.oneworld.com/content/factsheet/W1_2011-01%20Introduction%20to%20oneworld.pdf Rodrigue, JP. (2005). Market share of global air traffic. Retrieved September 18, 2011 from http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/airalliances.htmlSkytrax. (2011). Global Airline Prices. Retrieved September 17, 2011 from http://www.worldairlineawards.com/Awards_2011/alliance2011.htmStar Alliance. (2011). Star Alliance: By the way. Retrieved September 17, 2011 from http://www.staralliance.com/en/about/United Airlines. (2011). Star Alliance. Retrieved September 18, 2011 from http://www.united.com/page/article/0,6867,1519,00.html