What will you do if you have 7 million US dollars?

Build and run a new hotel? Or Open a new Casino?

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

Global alliance trends in aviation industry

33%

67%

Alliance members share of capacity

OthersAlliance member

14%

86%

Share of airline numbers

Alliance membersOthers

Source: CAPA – Centre for Aviation and Innovata for the week commencing 16 Sep 2013

Worldwide network coverage

Star1328 destinations

(195 countries)

28 members

Skyteam1024 destinations

(178 countries)

19 members

Oneworld841 destinations(157 countries)

15 members

Seamless policy

Common products - Common lounge- Common check-in area

Common branding and marketing strategies

Having FFPs multilaterally

Attract corporate travelers

Loyalty power

Extensive access to key domestic markets

Setup strategic Joint-venture cooperation with alliance member

Legal restriction

The potential risk of global allianceIt 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

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

References

• http://www.skyteam.com/• http://centreforaviation.com/analysis/airlines-in-transition-part-2-wh

ere-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-transfor

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Thank you!