The formation of highly integrated strategic alliances in the airline industry started during the1990’s with Star Alliance as the first global player, as passenger airlines faced deregulation and wanted to support their growth and expansion in international markets. For cargo companies, this type of integration came around later at the beginning of 2000. As a result of this increased co-operation, major alliances were formed with the launch of SkyTeam Cargo and WOW. Beginning at the dawn of the new century, these alliances should mark a cornerstone that enables long term success and survival through synergy effects and higher competitiveness individually and as a group. Now, a decade later, WOW and SkyTeam Cargo have evolved, but in different directions and not all members or ex-members are content with the results.
Strategic alliances in air transport have been studied widely in recent publications, most of which just cover the passenger side of the business. There is a lot of information, statements and common knowledge about what benefits alliances can bring to its members, but a literature review leads to the fact that research is very sparse when it comes down to evaluating the actual impact of alliance integration on air cargo carriers’ standing.
Strategic Alliances (WOW, SkyTeam Cargo) in Air Cargo Operations: It is the purpose of this bachelor thesis to analyze and interpret the impact of a strategic alliance on cargo airlines‘ Revenue-Ton-Kilometers key figures (provided by Airline Business 1998-2010) and market share developments. The goal is to provide answers to the questions if air cargo operators did profit from alliance integration and why that was the case or not? Can alliances create value for their respective members by increasing their market share in terms of RTK?
Additional questions that will be addressed in the process of answering these core questions:
•What are the main benefits and disadvantages for alliance members
•What major challenges do (prospective) members face in an alliance
•Are there common success and stability factors and why do alliances fail
•What alternatives are there to alliance formation
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 1.1. Research Questions
- 1.2. Methodology
- 1.3. Structure
- 2. Research Background
- 2.1. Market Environment
- 2.1.1. Challenges
- 2.1.1.1. Liberalization and Regulatory Environment
- 2.1.1.2. Integrators and Competing Business Models
- 2.1.2. Opportunities
- 2.1.2.1. Innovation in Air Cargo Transport
- 2.1.2.2. Market Numbers
- 2.2. Idiosyncratic Economics of Air Cargo Operations
- 2.3. Reactions of Air Cargo Carriers
- 2.3.1. WOW
- 2.3.1.1. Taking Off with High Hopes
- 2.3.1.2. Difficulties Getting Off the Ground
- 2.3.1.3. The Recent Years
- 2.3.2. SkyTeam Cargo
- 2.3.2.1. The Early Days
- 2.3.2.2. Rapid Growth
- 2.3.2.3. Status Quo and Outlook
- 2.4. Summary of WOW and SkyTeam Cargo
- 3. Literature Review - State of the Field
- 3.1. A Definition and Distinction of the Alliance Term
- 3.2. State of the Field
- 3.2.1. Strategic Alliances in General
- 3.2.2. Strategic Alliances in Air Transportation
- 3.3. The Concept of Strategic Alliances
- 3.4. Alliances in the Air Cargo Business
- 3.4.1. Driving Forces of the Alliance Decision
- 3.4.1.1. Get Exposure to Growth
- 3.4.1.2. Fight for Market Share
- 3.4.1.3. Synergies and Complementary Assets
- 3.4.1.4. Others
- 3.4.2. Alliance Advantages
- 3.4.2.1. Access to Regional Knowledge and Established Relationships
- 3.4.2.2. Organisational Learning and Innovation
- 3.4.2.3. Counteract Market Uncertainties and Volatility
- 3.4.2.4. Economies of Scale, Density and Scope
- 3.4.2.5. Market Power and Presence
- 3.4.2.6. Usefulness for Professionals
- 3.4.2.7. Advantages for Customers
- 3.4.3. Disadvantages
- 3.4.3.1. Result of Economies of Scale, Scope and Density
- 3.4.3.2. High Requirements
- 3.4.3.3. High Dependence
- 3.4.3.4. Others
- 3.5. Core Questions and Prerequisites for Alliance Integration
- 3.5.1. Value Creation and Distribution
- 3.5.2. Alliances as a Long Term Commitment
- 3.5.3. Foreseeing of Conflicts
- 3.5.4. Reciprocation in a Network of Alliances
- 3.5.5. Prerequisites for Successful Alliance Creation
- 3.6. Alliance Criticism and Other Cooperation Strategies
- 3.6.1. Criticism
- 3.6.2. Other Co-operation Methods
- 3.7. Challenges and Common Complications
- 4. Transition to the Analytical Part
- 5. Analysis of Both Alliances' Revenue-Ton-Kilometers
- 5.1. Assumptions
- 5.2. Total Market
- 5.3. WOW and SkyTeam Cargo
- 5.3.1. WOW Alliance
- 5.3.1.1. Lufthansa Cargo
- 5.3.1.2. Singapore Airlines Cargo
- 5.3.1.3. SAS Cargo
- 5.3.1.4. Japan Airlines Cargo
- 5.3.1.5. WOW Conclusion
- 5.3.2. SkyTeam Cargo
- 5.3.2.1. Approach
- 5.3.2.2. SkyTeam Cargo Founding Members
- 5.3.2.3. Korean Air Cargo
- 5.3.2.4. Air France and KLM
- 5.3.2.5. Delta Airlines and Northwest Airlines
- 5.3.2.6. Aeroméxico
- 5.3.2.7. Alitalia
- 5.3.2.8. SkyTeam Cargo Conclusion
- 5.3. Comparison WOW And SkyTeam Cargo
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work aims to analyze the performance of two air cargo alliances, WOW and SkyTeam Cargo. It investigates the market environment, the specific economic characteristics of air cargo operations, and the strategies employed by these alliances. The analysis utilizes revenue-ton-kilometers (RTK) data to compare their market share and growth.
- Market analysis of the air cargo industry
- Comparative analysis of strategic alliances in air cargo
- Economic factors influencing air cargo alliance performance
- Strategies and competitive dynamics within air cargo alliances
- Assessment of alliance success based on RTK data
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This chapter introduces the research questions guiding the study, outlines the methodology employed, and details the structure of the entire work. It sets the stage for a comparative analysis of two air cargo alliances, establishing the scope and objectives of the research. The research questions likely focus on the success and challenges of these alliances in a competitive market. The methodology may involve a quantitative analysis of market data, possibly focusing on revenue-ton-kilometers.
2. Research Background: This chapter provides essential context by examining the market environment of air cargo, including challenges such as liberalization and competition from integrators, and opportunities arising from innovation and market growth. It then delves into the unique economic aspects of air cargo operations, setting the stage for a detailed examination of two specific air cargo alliances: WOW and SkyTeam Cargo. The chapter likely explores factors like fluctuating fuel prices, geopolitical issues, and varying regulatory landscapes.
3. Literature Review - State of the Field: This chapter reviews existing literature on strategic alliances, particularly within the air transportation sector, and defines the concept of strategic alliances. It explores the driving forces behind the formation of such alliances, detailing their advantages (access to resources, economies of scale, market power) and disadvantages (dependence, potential conflicts). This section lays the theoretical groundwork for the empirical analysis that follows, ensuring the study is grounded in relevant academic discourse. The chapter may also address the long-term commitment, challenges to integration and cooperation strategies.
5. Analysis of Both Alliances' Revenue-Ton-Kilometers: This chapter presents a quantitative analysis of the revenue-ton-kilometers (RTK) data for both WOW and SkyTeam Cargo alliances. It examines the overall market share, the contribution of individual member airlines within each alliance, and a direct comparison between the two alliances. This in-depth analysis will likely use graphs and charts to visualize the growth and market positioning of each alliance over time. The assumptions made in the analysis, such as data sources and calculation methods are also discussed.
Schlüsselwörter (Keywords)
Air cargo alliances, strategic alliances, revenue-ton-kilometers (RTK), market analysis, competitive dynamics, airline partnerships, WOW alliance, SkyTeam Cargo, economic factors, alliance performance, market share, growth analysis.
Frequently Asked Questions: Analysis of Air Cargo Alliances: WOW and SkyTeam Cargo
What is the main topic of this document?
This document is a comprehensive preview of an academic work analyzing the performance of two air cargo alliances: WOW and SkyTeam Cargo. It uses revenue-ton-kilometers (RTKs) as a key performance indicator to compare their market share and growth, while also examining the broader market environment and strategic considerations.
What are the key research questions addressed in the study?
While not explicitly stated, the research likely investigates questions surrounding the success and challenges faced by these alliances in a competitive market. This includes analyzing the impact of market factors, alliance strategies, and the overall effectiveness of their collaborative approach.
What methodology is used in the analysis?
The study employs a quantitative analysis of market data, focusing primarily on revenue-ton-kilometers (RTKs) to assess market share and growth of both alliances. Qualitative analysis is also used to explore market conditions, alliance strategies, and the broader context of the air cargo industry.
What is the structure of the document?
The document is structured into several key sections: an introduction outlining the research questions and methodology; a background section covering the market environment and the economics of air cargo operations; a literature review exploring strategic alliances in the air transportation industry; and a central analysis section comparing the RTKs of WOW and SkyTeam Cargo, including an in-depth examination of individual member airlines within each alliance. The document also includes a table of contents, objectives and key themes, chapter summaries, and keywords.
What is the significance of revenue-ton-kilometers (RTKs) in this study?
RTKs serve as the primary quantitative metric for comparing the performance of WOW and SkyTeam Cargo. Analyzing RTKs allows for a direct comparison of the market share and growth trajectories of both alliances, providing a key measure of their success in the air cargo market.
What are the key challenges and opportunities in the air cargo market discussed in the study?
The study examines several challenges including market liberalization, competition from integrators (such as FedEx and UPS), and volatile fuel prices. Opportunities are explored as well, such as innovation in air cargo transport and overall market growth.
How does the study compare WOW and SkyTeam Cargo?
The central analysis section directly compares the two alliances, examining their individual market shares based on RTK data. This comparison also includes an analysis of the performance of individual member airlines within each alliance.
What are the advantages and disadvantages of strategic alliances in the air cargo industry discussed in the study?
The advantages include access to resources, economies of scale, market power, and increased regional knowledge. Disadvantages discussed include dependence on alliance partners, potential conflicts, and high integration requirements.
What are the key findings or conclusions of the study (as previewed)?
The preview does not provide specific conclusions, but it indicates that the analysis will provide a comparative assessment of the performance of WOW and SkyTeam Cargo based on RTK data, identifying strengths, weaknesses, and overall market positioning of each alliance.
What are the keywords associated with this study?
Keywords include: Air cargo alliances, strategic alliances, revenue-ton-kilometers (RTK), market analysis, competitive dynamics, airline partnerships, WOW alliance, SkyTeam Cargo, economic factors, alliance performance, market share, and growth analysis.
- Citar trabajo
- Florian Smeritschnig (Autor), 2012, WOW and SkyTeam Cargo: Strategic Alliances and Their Impact on Air Cargo Operations from 1998 to 2010 (based on Airline Business Cargo Surveys), Múnich, GRIN Verlag, https://www.grin.com/document/199184
