Abstract
Why Airline Alliances?
- Before Airline Alliances, global travel was complex and inconvenient
- Purchasing and maintenance were fragmented
- Connections were uncoordinated, problematic, and time consuming
- Frequent Flyer Benefits, including lounge access, did not extend beyond individual airline offerings
A Global Solution:
In 1997 Air Canada, Lufthansa, SAS, Thai Airways International, and United responded to customer needs
- Together they established the Star Alliance on May 14, 1997 – the first global airline alliance
- Key reason for alliance success: Global preemption by partner selection as first mover advantage resulted in alliance attractiveness to potential allies throughout the alliance lifecyle (cf. 2005 statistics).
