International Aviation Developments. Second Report. Transatlantic Deregulation.The Alliance Network Effect

摘要

This report looks at further developments in transatlantic markets by updatingand expanding information presented in our first study. While the operating and competitive structures in the transatlantic market are far from settled, the pro-consumer changes identified in our first report dramatically accelerated during 1999. The alliance between Delta/Austrian/Sabena/Swissair began to dissolve toward the end of 1999 and has now ceased. Delta is developing a code-share alliance with Air France. Two of its former partners, Sabena and Swissair, now have an immunized relationship with American Airlines, and the third, Austrian has joined the Star Alliance. Various other changes in alliance formation occurred during 1999 as well. Our focus here, however, is on the empirical results of transatlantic deregulation. In this report, we continue to focus on the same three strategic alliances as our first report, Northwest/KLM, United/Lufthansa, and Delta/Austrian/Sabena/Swissair, because the latter continued to effectively function as an alliance through most of calendar year 1999, which is the most current data available. Of course, the changes in airline relationships that have occurred and will continue to occur promise interesting developments to report in future updates.