Strategic and Policy Issues in Airline Industry

This report focuses on strategic alliance. At the beginning of the report, we t review the airline industry agreements in the past 30 years after that we present the strategic alliance as a survival strategy in this industry. Later we review characteristics of an attractive strategic partner and we discuss how those characteristics fit star alliance’s members. Finally we discuss effects of strategic alliances on partner’s outputs, frequency of services, market outcome, consumer welfare, inter-continental traffic routing patterns, its impacts on traffic routing patterns, liberalizing bilateral agreement, and geographical locations on Star alliance which is one of the most powerful alliances around the worlds by using hypothetical model. We finally conclude our lesson learned form this project