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Abstract
The emergence of airline alliance brands represents an unexplored area in the context of the nascent field of corporate brand management. This study reports a case study of an alliance brand within the airline industry: oneworld. The research into the oneworld alliance was driven by two fundamental questions relating to alliance brands: what are alliance brands and what are the implications of alliance brands for corporate branding and brand alliances? This study suggests that, with careful nurturing on the part of marketers, alliance brands have the potential to develop into a valuable strategic resource. This preliminary study has resulted in recommendations in terms of research and practice relating to alliance brands.
INTRODUCTION
The last two decades have witnessed most major airlines entering into alliances with other carriers. In part, this strategy is seen as an alternative to a formal merger or acquisition. This is because a formal merger or acquisition can be fraught with difficulties. There can be problems relating to national pride1 and in terms of regulatory restraint. These obstacles, more often than not, are insurmountable. This helps to explain why airline alliances have become prevalent: they are an attractive substitute to a formal merger and acquisition.
The principal beneficiaries of such alliances are the airlines themselves. Alliances offer advantages in terms of economies of scale, access to landing slots and a doorway to foreign markets.2 Their existence allows airlines to pool personnel, aircraft, technologies and the development of route networks, including global freight services. Other attractions include the reduced costs relating to the servicing of aircraft. Airlines also acquire greater leverage in ternis of alliances, securing advantageous terms with regard to the purchase of aircraft and fuel.3 From the above, it would appear that in terms of competitive advantage, airline alliances rather than airlines on their own are becoming important discriminators and strategic assets. In terms of customer benefits, airline alliances habitually claim to offer passengers benefits in terms of seamless travel and service support and increased opportunities for accruing air miles underpinned by a shared marketing effort.4
Part of the new weaponry of alliances has been according alliances the status of brands. Within the airline sector, airline alliances have become a very attractive strategic option for the reasons cited above....