Why Was The Star Alliance

An alliance is an agreement made between two or more countries to give each other help if needed. When an alliance is signed, those countries become known as allies. A number of alliances had been signed by countries between 1879 and 1914. Countries formed alliances to gain strength in numbers and to have fewer countries against them. By 1914 there had been two alliances formed in Europe; ‘The Triple Entente’ which was formed with France and Russia and was later joined by Britain in 1907 and ‘The Triple Alliance’ which included Germany, Austria- Hungary and Italy.

2. United Airlines likes to use strategic planning to try and stay ahead of the competition but in its history it has not always worked. United Airlines has tried to make mergers without the approval of the union and were not able to complete it when the department of justice said that the merger would not happen because it would bring a loss in competition. One of the things that has helped the business, is that they use a hub and spoke method for their passengers. This allows the company to provide many different air ports and terminals that its customers can use and also helps to stream line flight schedules and saves the company millions of dollars every year. Partnering with these major companies to form a global alliance helps to circumvent national laws, share resources to develop additional routes and global marketing strategies. The major alliances were Star, Oneworld, SkyTeam, and Wings. The agreememnt that these companies made to work together saved all of the millions of dollars and was able to help all of the companies to compete globally.

During the year 1879 to 1914 many alliances were signed between countries and it meant that the countries were pledged to help each other in war if one of their allies declared war. The details of these alliances is such as:

Cooperation within alliances poses several challenges to managers: the size of the alliance, the need to intensify cooperation and the harmonization and standardization of common processes, and the search for synergies to reduce costs. However, in times of crisis, alliances do not necessarily prevent stiff competition between the partners. At present, five alliances – One World, Star, Wings, Sky Team and Qualiflyer stand out as the core groupings around which other airlines with strong regional networks will come together to form worldwide networks and can be described as global alliances. But they remain fragile creations subject to competing attractions and economic forces. Over the years, several companies have switched from one alliance to another. Austrian Airlines, for example, moved from the Qualiflyer to the Star alliance. Air France has recently floated the idea of creating a Mediterranean alliance with Alitalia and Iberia. To make this three-way deal possible, Iberia would have to leave the OneWorld alliance.

Alliances had been formed which made other countries very nervous. This mean’t many counties had friction with each other.

During the World War I, alliances were one of the best known causes of it. An alliance is a formal political, military or economic agreement between two or more nations. There is also economic elements,investment or loans that alliances may contain. The Great Powers of Europe in 1914, had shuffled themselves into alliance blocs. The two opposing blocs mean that between two nation meant war between them. Alliances provided European states with a measure of protection; they served as a discouragement to larger states who might make war on smaller ones. During the 1700s alliances were used both as a defensive measure and a political device. The alliance system was a network of treaties, agreements and that were negotiated and signed prior to

Thirdly, as countries began the military build-up of the late nineteenth and early twentieth century, it became increasingly important for nations to ally themselves to each other as to uphold the balance of power. Assuredly, an alliance system of similar fashion and exercise had existed in Europe for the past century or so. Indeed, it wasn’t even surprising that major powers had allied themselves, for, again, they had be

Alliance system was one of the causes of WWI. before the war there were only two alliances. When the Archduke of Austria-Hungary was assassinated by a group of Serbian nationalists, Austria-Hungary made a many demands for the government of Serbia. One if the alliances was the triple Entente which included Russia, Great Britain, and France. And the other was the triple alliance which included A-H, Germany- and

The Alliance System meant that leaders had to choose between backing off or fighting with all their might. It was simply common opinion that everyone had to be together, however each nation was unique

In the 1900’s alliance systems were a major role in WWⅠ and WWⅡ. They helped maintain order and organization during and after the war. Two of the most major alliance systems were the The Axis and Allied powers.

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

Frequent flyer programs for airlines are often considered effective marketing tools. Strategic information can increase the number of frequent fliers through various ways. Airline companies have the opportunity to gather information through various techniques such as consumer surveys to understand what costumers like and dislike with not only the respective company but any other competitors as well. Airline companies can identify incentives to offer such as free baggage, free flights, early boarding or even partnerships with other non-airline companies to retain loyalty customers. For instance, I now use my JetBlue credit card more than my American Airlines card to gain reward points because they also have partnerships with Hilton hotels and

Lastly, the Star Alliance has succeeded in making United Airlines a more globally-known carrier by teaming up with some of the world’s top airlines. This network is now the largest global airline alliance, and has offered connections for passengers and cargo customers to over 965 world destinations in around 162 countries. Some of United Airline’s well-known partners include: Air Canada Lufthansa, Scandinavian Airlines, Singapore Airlines, South African Airlines, and Air New Zealand, just to name a few. All of United’s Star Alliance partners are complete participants in the lucrative Mileage Plus Program, which offers customers a chance to earn miles as they fly which can later be retrieved and reused for other flights and is the runner-up to being the most successful loyalty programs worldwide with 54 million global members. (United Air Lines, 2009)

The airline industry can be considered an imperfect oligopoly. There are several large carriers that dominate long distance flights, and many small carriers that compete for short distance flights. Competition is fierce, and the return for most carriers is very low. Some airlines are trying to differentiate themselves, like JetBlue for example, by offering superior services at low prices. Other low cost airlines, like Southwest, offer low costs with no frills. Most airlines offer a frequent flyer programs in order to develop brand loyalty. In recent years there has also been several alliances formed between airlines. These alliances enable

In less than twenty years, the global industry has gone through tremendous change. Several airlines had gone out of business that had been on top of the industry for years. One of the remarkable changes had been airline alliances. The case focuses on the airline industry and how airlines are forming alliances and joint ventures. It then introduces the partner firms Air France KLM , and Delta . Air France KLM had over 25 collaborative agreements with other carriers and was a founding member of Skyteam, one of the leading airline groups. Air France KLM and Delta Airlines formed revenue