Two firms with high strategic interdependence are more likely
to form an alliance than are other, non-interdependent firms. The
higher the number of past alliances companies formed, the more
likely they are to form new alliances. In the absence of prior
direct ties between two firms, the larger the number of their
common third-party ties, the more likely they are to form new
alliances with each other.
Slide 3
A firms position in the network is the result of both its own
past alliances and those of other firms in the network.
Slide 4
Slide 5
Slide 6
Founded in 1997 by Lufthansa, United Airline, Air Canada and
Thai Airways. The Star Alliance in 2008, it was the first airline
alliance to land the Market Leadership Award from Air Transport
World. In 2007, it was voted alliance of the year, three times. It
has been singled out as best alliance eight times since 2002.
Slide 7
Lufthansa is a German airline which stipulated a series of
alliances. Its shareholding is composed by the Federal Government,
Postal Services, State of North Rhine- Westphalia, Railways
Authority and by the Agency for National Reconstruction of Germany.
As a result of the European deregulation the company lost its
monopoly in the air transport sector; so Lufthansa needed to adapt
to new conditions. Request for State funding but not timely
intervention by the State. Competition especially from the
competitor company British Airways.
Slide 8
Two firms with high strategic interdependence are more likely
to form an alliance. Development of a network of alliances with
regional low cost companies.
Slide 9
Slide 10
Reconstruction of the subsidiary (Lufthansa Express) to
contrast the regional subsidiary of British Airways created after
the deregulation.
Slide 11
The higher the number of past alliances companies formed, the
more likely they are to form new alliances. 2005: SWISS is
integrated as an independent airline in the Lufthansa Group. Its
integration consolidates Lufthansas position among Europes leading
network carriers. 2009: Swiss International Air Lines AG becomes
part of the Lufthansa Group.
Slide 12
Bilateral cooperation accords augment the route Lufthansa
network, additionally to Star Alliance and Lufthansa Regional.
Code-sharing is one benefit of the accords; another is mutual
recognition by partner airlines of each others frequent flyer
program.
Slide 13
Partner Airlines are: Jet Airways, Air India, Luxair and Air
Malta.
Slide 14
Joint Ventures: Lufthansa has participated in two strategically
and commercially important joint ventures for several years. The
A++ transatlantic joint venture with United Airlines and Air Canada
The J+ bilateral Europe/Japan joint venture with All Nippon Airways
(ANA).
Slide 15
The larger the number of common third- party ties are, the more
likely companies are to form new alliances with each other.
Acquisition of 38% of a small Scottish vector (Business Air) with a
good presence at the airport of Manchester.
Slide 16
The airports play a major role within the business between
airlines, even if their importance has been reduced when the
national company entered a partnership. Indeed: They have modified
their structures consequently the evolution of the industry
scenario. Airports have lost some of their negotiating power, since
now they have to negotiate with a set of coordinates airlines. Of
course, once reached, an agreement becomes more binding because
both the airport and the individual companies invest to reach a
synergic and harmonious growth.
Slide 17
Availability of space for operations Compatibility with network
Structural features Support in marketing Type and quality of
facilities Easy transfer connections Maintenance Positioning in the
context of reference.
Slide 18
To make air travel even easier, the member airlines have
coordinated their schedules, which often shortens the overall
journey time for passengers switching from one Star Alliance
airline to another on connecting flights. Moreover, customers
receive a boarding pass for onwards flights, even if they fly on
with a different Star Alliance member. The common objective of each
partnership is to offer to customers harmonized and coordinated
services with uniform product and service standards.
Slide 19
Alliances formation is stimulated by social structures. Air
transport sector is significantly affected by deregulation (Europe
and United Sates) and social, political, economic variables.
Slide 20
Slide 21
Gulati R., Social structure and alliance formation patterns: a
longitudinal analysis, 1995. http://www.lufthansagroup.com
http://www.lufthansagroup.com http://tesi.eprints.luiss.it
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