The concept of ‘global alliances' between airlines has become increasingly evident in the past three years, according to KPMG International Airline Group.
This is one of the findings of a survey of 24 international airline CFOs.
The report, Strategic Issues and Current Trends in the International Airline Industry, has been produced in association with the International Air Transport Association (IATA).
Strategic
It suggests that strategic alliances are set to bring important competitive advantages to large carriers, and that those advantages will become more significant than both inflight service and safety record.
Eighteen of the 24 airlines surveyed, reported that forming an alliance with other carriers was an increasingly effective response to competitive threats.
The report also identifies concern over the likelihood of ‘open skies' existing for routes between the United States and the European Community by the year 2000.
Nineteen of the 24 CFOs considered this ‘increased liberalisation' would have a negative effect on their airline.
Copies of the report are available from KPMG in Hall 1/A5.
Source: Flight Daily News
