Strategic Alliances: Implications for Low Cost Airlines

The airline industry has previously been a heavy regulated industry with partially state-owned airlines and controlled competition across borders. This put the traditional airlines in a comfortable position in their domestic markets as new entrants were few due to regulations and other barriers.

After the deregulation of the airline industry new actors entered the market and among them were the low-cost airlines. These actors are not involved in the same traditional airline alliance used by the traditional airlines to strengthen their position on the market.  The purpose of this thesis is to evaluate if low-cost airlines benefit from engaging in strategic alliances or collaborations, and identify possible alliance configurations….


1 Introduction
1.1 Background
1.2 Problem Discussion
1.3 Purpose
1.4 Research Questions
1.5 Disposition
2 Frame of Reference
2.1 Strategy
2.1.1 Porter’s Generic Strategies
2.1.2 Porter’s Five Forces
2.2 Strategic Alliances
2.2.1 Strategic Alliance Objectives and Benefits
2.2.2 Strategic Alliance Success Factors and Risks
2.2.3 Risks and Concerns
2.3 The Airline Industry
2.3.1 Low-Cost Airline
2.3.2 Strategic Alliances in the Airline Industry
2.4 Theoretical Propositions
2.4.1 The Threat of Entry
2.4.2 Competitive Rivalry
2.4.3 Threat of Substitutes and Bargaining Powers
3 Method
3.1 Choice of Method
3.1.1 Case Studies
3.1.2 Case Selection
3.2 Interview Methods
3.3 Data Sources
3.4 Method of Analysis
3.5 Validity and Trustworthiness
4 Empirical Findings
4.1 Fly Me
4.1.1 Starting Up
4.1.2 The Business Model
4.1.3 Collaboration
4.2 Flynordic
4.2.1 Business Model and View of the Market
4.2.2 Collaboration
4.3 Presentation of the field expert – Harald Rosén
5 Analysis
5.1 Airline Industry Reflections
5.1.1 Prerequisites for starting up
5.2 The Low-Cost Airline Strategy
5.2.1 Fly Me
5.2.2 Flynordic
5.3 Collaboration for competitiveness
5.3.1 Alliance Configuration
5.3.2 Alliance benefits
5.3.3 Alliance Costs and Risks
5.4 Traditional Strategic Airline Alliances
6 Conclusions and Final Discussion
6.1 Conclusions
6.2 Final Discussion

Author: Gustafsson, Lisa,Simberg, Therese

Source: Jönköping University

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