Airline alliances and partner firms' outputs

• Main Authors: Park, Jong-Hun, Zhang, Anming
• Format: Article in Journal/Newspaper
• Language: unknown
• Subjects: North Atlantic
• Online Access: http://www.sciencedirect.com/science/article/pii/S1366554598000180

This paper analyzes the effects of airline alliances on partner airlines' outputs by comparing traffic changes on alliance routes with those on non-alliance routes. A theoretical model of an airline alliance is developed, and an empirical analysis is then conducted using panel data from four major alliances in North Atlantic markets during the 1992-1994 period. It is found that most of the partners have greater traffic increases on their alliance routes than those on their non-alliance routes, supporting a hypothesis derived from the theoretical model. strategic alliance North Atlantic markets output changes