1. What will you do if you have 7
million US dollars?
Build and run a new hotel? Or Open a new Casino?

2. What a CEO of a small airline will consider when he has this money in hand?

3. Global alliance trends in aviation industry
33%
67%
Alliance members share of
capacity
Others
Alliance member
14%
86%
Share of airline numbers
Alliance members
Others
Source: CAPA – Centre for Aviation and Innovata for the week commencing 16 Sep 2013

4. Worldwide network coverage
Star
1328 destinations
(195 countries)
28 members
Skyteam
1024 destinations
(178 countries)
19 members
Oneworld
841 destinations
(157 countries)
15 members

5. Seamless policy
Common products - Common lounge
- Common check-in area
Common branding and
marketing strategies

6. Having FFPs
multilaterally
Attract corporate
travelers
Loyalty
power
Extensive access
to key domestic
markets
Setup strategic
Joint-venture
cooperation with
alliance member
Legal
restriction

7. The potential risk of global alliance
It is costly (membership fee, system changes to meet requirement)
Offer not seamless (in term of product, booking changes, handling
irregular flights)
Commercial conflicts of interest among different status members

8. How to tackle these risks
• Choose alliance fit your strategic network
• Customize and strengthen bilateral cooperation within alliance
• Setup strategic group of small airlines with common benefits to have

9. References
• http://www.skyteam.com/
• http://centreforaviation.com/analysis/airlines-in-transition-part-2-
where-are-smaller-airlines-in-the-new-partnership-world-105500
• http://centreforaviation.com/profiles/alliances/
• http://www.staralliance.com/en/about/member_airlines/
• http://centreforaviation.com/analysis/global-airline-alliances-
transformed-by-antitrust-immunity-but-confronted-by-uncertainty--
part-1-54369

10. Thank you!