Airline Alliance Survival Analysis: Typology, Strategy and Duration

GUDMUNDSSON, S.V. and RHOADES, D. (2001) Airline alliance survival analysis: typology, strategy and duration, Transport Policy, 8(3), 209-218

Posted: 14 Jul 2014

See all articles by Sveinn Vidar Gudmundsson

Sveinn Vidar Gudmundsson

Toulouse Business School

Dawna L Rhoades

Embry-Riddle Aeronautical University

Date Written: July 12, 2001

Abstract

Alliances have become the organization model of choice in many industries. This study uses data from the Airline Business annual surveys of airline alliances to test a proposed typology predicting survival and duration in airline alliances. The Rhoades-Lush typologies classified key activities of airline alliances by their level of complexity and resource commitment in order to suggest a series of propositions on alliance stability and duration. The results of our analysis indicate that alliances containing joint purchasing and marketing activities had lower risk of termination than alliances involving equity. Furthermore, alliances spanning more than two typologies showed lower risk of termination than one and two typology alliances. This is explained as the ‘strategy effect’ or in other words the tendency of alliances wide in scope to be more resistant to early termination.

Keywords: airline alliances, alliance survival, alliance termination, alliance typologies, strategy effect, resource commitment, strategy, airline industry

JEL Classification: M1, L93

Suggested Citation

Gudmundsson, Sveinn Vidar and Rhoades, Dawna L, Airline Alliance Survival Analysis: Typology, Strategy and Duration (July 12, 2001). GUDMUNDSSON, S.V. and RHOADES, D. (2001) Airline alliance survival analysis: typology, strategy and duration, Transport Policy, 8(3), 209-218 . Available at SSRN: https://ssrn.com/abstract=2465437

Sveinn Vidar Gudmundsson (Contact Author)

Toulouse Business School ( email )

20, bd Lascrosses
Toulouse, 31068
France

HOME PAGE: http://www.tbs-education.fr

Dawna L Rhoades

Embry-Riddle Aeronautical University ( email )

600 South Clyde Morris Blvd.
Daytona Beach, FL 32114
United States

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