Decision models for airline passenger and cargo network alliances

Strategic alliances are extensively employed in the automotive, electronics, computer telecommunications, airlines and hi-technology network-oriented industries. The airline industry has become one of the most competitive industries lately. Considerable works have been dedicated to studying airline alliances. Having said that, existing studies only concentrate on the air passenger alliance and neglect the airline service network structure. This report develops, for the first time, a number of economic models to analyze the strategic alliance of both passenger and cargo services from a network integration approach. The alliance synergies and network complementary are addressed. The report is created in 3 distinct stages and the outcomes are then collated and summarized. The initial study deals with the alliance of international service networks of two regional airlines and evolves an alliance model. By analyzing the alliance impact on market outcome, profit and social welfare, the decision analysis tools for both government and airlines are produced. The next study offers an economic model to analyze the impact of the alliances between the combined passenger and cargo networks and the dedicated cargo networks…


Chapter 1 Introduction
1.1 A Brief Review of Airline Alliances
1.2 Background to Air Cargo Alliances
1.3 Motivations and Thesis Organizations
Chapter 2 Literature Review
2.1 Managerial Studies on Strategic Alliances
2.2 Empirical Studies on the Airline Alliance Effects
2.3 Theoretical Models for Airline Alliances
2.4 Literatures on Air Cargo Alliances
Chapter 3 Decision Analysis for International Air Network Alliances
3.1 The model
3.1.1 Basic Assumptions
3.1.2 The Pre-Alliance Model
3.1.3 The Post-Alliance Model
3.2 Impact on Airlines’ Output and Profit
3.3 Impact on Economic Welfare
3.4 Decision Analysis
3.5 Summary
Chapter 4 Airline Alliances for Passenger and Cargo Networks
4.1 Introduction
4.2 The Model
4.3 Effects of the Alliance
4.4 Network Design and Alliance Synergies
4.4.1 Effects of Network Structure Change
4.4.2 Effects of Network Setup Cost Change
4.5 Summary
Chapter 5 Competition Models in Intermodal Transport Logistics
5.1 Introduction
5.2 Basic Model
5.3 Effects of Alliance and Intermodal Integration
5.4 Effects of Alliance and Competition
5.4.1 Simulation Study on Market Share and Profit
5.4.2 Simulation Study on Deciding the Discount Rate
5.5 Summary…

Source: City University of Hong Kong

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