China Eastern Airlines - Alliance Analysis

CA3007 Strategic Management in the Aviation Industry

CA3007 Strategic Management in the Aviation Industry – Adam Marriott 06008442 Overview of China Eastern (MU) Overview of Oneworld (OW) Advantages MU offers OW Advantages OW offers MU Why not Star or SkyTeam Alliance? How this will effect the market Hurdles to overcome for Alliance membership Conclusion To summarise I will be reviewing the advantages on the basis of current and future markets to both MU and Oneworld of membership and a brief overview of specific niches filled and the effect upon the global Aviation outlook.

CA3007 Strategic Management in the Aviation Industry – Adam Marriott 06008442 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

CA3007 Strategic Management in the Aviation Industry – Adam Marriott 06008442 France Paris - Paris-Charles de Gaulle Airport Germany Frankfurt - Frankfurt Airport Russia Moscow - Sheremetyevo International Airport United Kingdom London - London Heathrow Airport Canada Vancouver - Vancouver International Airport United States Los Angeles - Los Angeles International Airport New York City - John F. Kennedy International Airport ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Vital direct destinations to Shanghai Hub *including code-share Wide coverage in South-east Asia including Japan, Korea, amongst others

CA3007 Strategic Management in the Aviation Industry – Adam Marriott 06008442 Oneworld covers the following destinations with the following 11 members A distinct gap remains for Mainland China

CA3007 Strategic Management in the Aviation Industry – Adam Marriott 06008442 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Combined frequency 55.2% Combined Capacity 53.9% Source: OAG Max Online for w/c 30 March 2009 SkyTeam Star

Currently no New York service to any mainland China destinations within Oneworld. A major opportunity for China Eastern.. Co-operation already in place for LAX – PVG with American Airlines, a greater co-operation and shared resources through Oneworld The most popular route within China, Beijing-Shanghai and many similar domestic pairings would offer Oneworld to become as competitive as other Alliances with Chinese carriers

CA3007 Strategic Management in the Aviation Industry – Adam Marriott 06008442 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

CA3007 Strategic Management in the Aviation Industry – Adam Marriott 06008442 China Eastern would not fill the niche in Star or SkyTeam due to both alliances containing major Chinese Airlines. Star – Air China, SkyTeam – China Southern. A result of severe overlapping on routes would occur. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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CA3007 Strategic Management in the Aviation Industry – Adam Marriott 06008442 ,[object Object],[object Object],[object Object],[object Object]

CA3007 Strategic Management in the Aviation Industry – Adam Marriott 06008442 ,[object Object],[object Object],[object Object]

CA3007 Strategic Management in the Aviation Industry – Adam Marriott 06008442

China Eastern Airlines - Alliance Analysis

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