Case Analysis of "Star Alliance (A): A Global Network"

Problem Identification

The air passage industry is facing the worst crisis in its history, Jaan Albrecht, chief executive officer of Star Alliance, said after looking back at the events in 2001 (p. 618). The terrorist attacks on September 11th, 2001 and the scotch recession had the airline industry face a sharp downturn for the minute of arc time since the beginning of the gulf War in 1991-1992. galore(postnominal) airline companies had to think on how to get customers back and however how to keep their current customers. Further more the airlines are facing a new threat from low-cost carriers, which are emerging and succeeding, oddly in Europe, in an incredible pace.

Causes of Problem

Star Alliance launched in whitethorn 1997 with renowned airlines as Lufthansa, United snaplines, Air Canada, SAS and Thai Airways. This bond came to life shortly after the last phase of the terce Package (p. 619) was put to an end by the European focusing in 1997, in which they terminated constraints on European carriers from work only domestic routes beyond their national borders. Many opposite airlines got into strong alliances, such as American Airlines and British Airways, KLM and Northwest, Delta Airlines and Air France.



Alliances in the airline task are powerful ones and more and more frequent flyers choose one of these above-mentioned alliances, in order to obtain miles, an expanded international network and business lounge access in airports worldwide.

One of the major reasons for the airlines getting into alliances was the Gulf War in 1991-1992, where airlines in general saw swag in air traffic and sales. The other one was the economic recession that hit not only Europe, but in like manner the world. People had less money, therefore flew less and seats in the airplanes were empty. The industry recovered very quickly, though, after this and even went to the...

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