Abstract
This paper summarizes main research results concerning global airline alliances and investigates the potential roles of Air Canada and other Canadian air carriers in the increasingly powerful global alliance networks. After describing the history, status and prospect of global alliance networks, the paper discusses the effects of alliances on productivity, pricing and profitability of partner carriers. It then discusses the effects of alliances on partners’ output, service frequency and consumer welfare, and the effects of global alliance networks on inter-continental traffic routing patterns as well as on traffic routing patterns in North America. Applying alliance research results, we investigate the roles of Air Canada and other Canadian carriers in North America and in global alliance networks. Finally, regulatory issues concerning international alliances are discussed.
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