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Airline Joint Venture Agreement

The level of cooperation depends on the stakeholder strategy. However, most of them consist of one or more of the following agreements: interline, code sharing and grouping of loyalty programs. The disadvantages are obvious, the consolidation of large airlines in joint venture agreements eliminates their competitors from the market, resulting in higher fares. Unlike traditional alliances, Value Alliance has announced that cooperation is currently limited to distribution and distribution. There is still no question of marketing integration, minimum standards of quality and services, aggregation of purchases or even loyalty programs. These elements are not part of the alliance strategy or of low-cost airlines in general [19]. Value Alliance members want above all to preserve the simplicity of technology. Today, due to many factors, it is impossible for a single company to go anywhere. Thanks to partnership agreements, it becomes real. Since 1997, when the first agreement was concluded between Northwest Airlines and KLM, we have noticed an increasing growth in JV (joint venture) agreements every year. By 2021, 35% of JV Airlines` total long-haul flights are expected to operate. You only have to look at the last 10 years presented in the table below to see how frequent these agreements are.

researchgate.net; thepointsguy.com; airlines.iata.org; lek.com; onemileatatime.com airlines want to cooperate with other airlines that complement them best, and this can be done in many different ways. To cite just a few examples of partnerships that have developed in recent years outside traditional alliances, has Aer Lingus entered into an interline agreement with United to bring the luggage to the final destination? Revenue calculation: Help calculates and bills revenues in accordance with bilateral processes or IATA and shares all relevant costs within a Value Alliance joint venture offers an innovative model with the creation of a common technology platform called Air Connection Engine, developed by Air Black Box. The particularity of this tool lies in the fact that it allows not only to link all the distribution platforms of the different companies, but also and above all to allow the sale of ancillary services such as seating, on-board meals or additional checked baggage, from one of the airlines` websites. This is a real innovation in the field of alliances and all the more important for low-cost companies as ancillary services sometimes account for up to 25% of their turnover [18]. European airline companies have understood this and are seeking tactical and strategic partnerships with Asian airlines in order to develop their destination networks in this region and gain market share. These partnerships often begin with code-sharing agreements, but it is the joint venture model that most effectively addresses this emerging market and removes barriers to entry into the region. Most of these partnerships are between members of the same alliance.

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