Integrating frequent flyer programs in multilateral airline alliances

Integrating frequent flyer programs in multilateral airline alliances

Journal: Air Transport Management

Author: Sveinn Vidar Gudmundsson, Evert R. de Boer, Christian Lechner

Published: 2002

Abstract

Forming branded alliances has become a common strategyin the airline industry. These can be defined as ‘multilateral alliances’ as opposed to bilateral alliances. Limited attention has been paid to assessing the impact of multilateral alliances on complex subnetworks, such as distribution networks, cargo alliances and frequent flyer programs. These sub-networks are ‘derivative networks’ within multilateral alliances. These derivative networks create several dilemmas as theyevolve causing airline managers to confront fundamental questions regarding harmonization, conflict resolution, and organizational structure.

Keywords: Airline alliances; Networks; Multilateral alliances; Frequent flyer programs; Embedded networks

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