Globalisation, airline alliances and tourism: a strategic perspective

The forces driving globalisation have impelled the majority of international airlines to enter into strategic alliance arrangements. Strategic alliances have enabled airlines to work around structural problems of the industry, particularly foreign ownership restrictions, national regulatory constraints and constraints on building up networks. The history of alliances, to date, shows them to be changing and unstable. Alliances will probably continue to be a feature of the international airline industry, but the forms and membership of alliances may well change further in the future. Further deregulation and liberalisation of the industry could mean that alliances become less important in the future, if deregulation allows mergers and acquisitions of airlines across national borders. Two scenarios of possible futures are presented, with an assessment of their impacts on tourism, as an aid to strategic analysis.