Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/95284
Authors: 
Bartolini, David
Gaggero, Alberto
Year of Publication: 
2012
Series/Report no.: 
Quaderni di Dipartimento 165
Abstract: 
This paper conducts an empirical analysis of the determinants of airline alliances. Well established airlines with large passengers' volumes are more likely to participate in an alliance and are also essential for alliance survivability. In line with this finding, older air-lines have a higher probability of being part of an alliance. Airlines operating with high load factors consider alliance participation as a significant alternative to fleet capacity expansion. As their market share grows, alliances become more appealing to airlines. Competitors' decision to enter an alliance tends to have a positive impact on alliance participation. The relatively similar magnitude and effect of the regressors' coefficients across different alliance choices, suggests that the airline's major decision is not to choose a specific alliance, but rather considering whether to enter into an alliance, as a possible strategy within its business model.
Subjects: 
Discrete choice model
Oneworld
Sky Team
Star Alliance
JEL: 
C23
L10
L93
Document Type: 
Working Paper

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