The Economic Effects of Airline Alliances and Mergers in the Airline Industry

Hoàng Trường Giang & Trần Thị Kim Anh

Abstract

Abstract

The paper discusses the impacts of international consolidation in the airline industry, with a focus on alliances and mergers which are two typical forms of consolidation. It provides a comprehensive overview of airline alliances and mergers development within the framework of economic effects. The paper compares economic effects on airlines as well as benefits for consumers and analyses the differences between various mergers and alliances as well as the synergies generated thereof. In all respects this paper attempts to provide a suitable framework for future research of international consolidation in the airline industry, as a strategy for international network development.

Key words: International Consolidation, Airline Industry, Economic Effects, Airline Alliances, Airline Mergers