Factors affecting airline decision to join alliance: evidence of global full-service carriers (FSCs)

Abstract

This paper illustrates the determinants of airlines’ decision to join global alliances. The author adopted various models and compared a variety of literature reviews to find out supporting ideas of the advantages of forming cooperative alliances. The result shows that airlines with several passengers’ volumes and full-service airlines lead to the participation between airlines with five beneficial emphases – reduction of utility cost, driving growth opportunities through globalization, strengthening market position, improvement of service quality, and enhancing passengers’ loyalty. These all present competitive advantages compared to non-airline alliances. Most collaborations have been joined by international airlines, however, some airline alliances are operated regionally as non-full members. Also, the key success of airline alliances would be searching. Therefore, this study offers a concise approach for an airline seeking strategies to improve efficiency conduct to sustainability.