Alliance Comparison

ALLIANCE COMPARISON 5

AllianceComparison

AllianceComparison

Alliancecan be regarded as a situation where two or more firms decide to worktogether and come up with a unique organizational identity, but it isadvisable for each organization to retain its individual identity andinternal control. There are numerous benefits for forming an alliancethat includes: realizing the joint strategic goal, minimizing riskand enhancing rewards, and leverage resources. Similarly, it is vitalto note that alliance is not an acquisition or a merger and it isdemanded that such institutions develop new control methods anddifferent management skills to facilitate operation success (Eged &ampKlecun, 2012). Therefore, the purpose of this paper is to analyzethree alliances namely: Oneworld, SkyTeam, and Star Allianceregarding membership, headquarter location and primary regions ofservice, operation and management, and economic data.

Chartof Comparison for the Three Alliances

Oneworld

SkyTeam

Star alliance

Membership

Memberships were obtained around the world such as American Airlines, British Airways and Canadian Airlines as the founding members

Full members are about 14

Memberships were obtained around the world including Aeromexico, Air France, Delta Airlines and Korean Air that constituted the founding members

Full members are about 20

Membership was obtained around the world, for instance, Scandinavian Airlines, Thai Airways International, Air Canada, Lufthansa and United States Airlines as the initial founders

Full members are about 27

Headquarters

The headquarters is located to Park Avenue in New York city

The headquarters is located at the world trade center Schiphol airports on the grounds of Amsterdam Airport Schiphol in Haarlemmermeer, Netherlands.

The headquarter is located at Frankfurt am Main, Germany

Regions of Service

These are the regions covered North America, Europe, south America, Australia, Asia Middle East and Africa

Regions of service include North America, Asia, Europe, Middle East Africa, South America and Australia

Africa, Asia, Europe, North America, New Zealand, Middle East and South America

Operation and Management

The alliance is managed by Ivan Chu as the chairman and Bruce Ashby as the CEO

Daily departures is 14,244, fleet 3,283 aircraft and annual passengers of about 475 million

It is being managed by Perry Cantarutti as the CEO and Su Liang as the deputy managing director

Daily departure is about 15,189, fleet 2,853 aircraft and annual passengers of about 569 million

Alliance is managed by Mark Schwab as the CEO and Calin Rovinescu as the chairman

Daily departures is about 17,808, fleet 3,927 aircraft and annual passengers 610.4 million

Economic Data

Net profit 10,782

Net profit 13,654

Net profit 19,544

Table1: Chart Comparison for the Three Alliances (Eged &amp Klecun, 2012)

Commentary

Thestrongest alliance is the Star since it has the highest number ofmembership (27) around the world and the headquarter is alsostrategic in Germany it also has a broad coverage of about 1,348destinations in 195 countries especially in Africa, Asia, Europe, andNorth America. Additionally, when compared with other alliances, Starhas the highest number of the departure of about 17,808 with annualpassengers of 610.4 million and the total number of aircraft is3,927.

References

Eged,F., &amp Klecun, R. (2012). THE OPERATING EFFECTIVENESS OF AIRCARRIERS IN STAR ALLIANCE GROUPING. ActaAvionica,14(24).