Essays on Merger, Acquisition or Alliance in the Global Airline Industry Literature review

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The paper "Merger, Acquisition or Alliance in the Global Airline Industry" is a great example of a literature review on management. Mergers, acquisitions, and alliances have been considered as strategic methods in different businesses around the globe. Their significance has been extensively felt in the global airline industry in the recent past. This fact is epitomized by Goel (2002, p. 1) who determined that the Airline Business Alliance Survey of the year 2000 revealed an estimated 579 alliance agreements which were already in existence, which had gone up from 280 agreements in 1994 which had since doubled when a similar survey had been carried out.

The survey in 2000 also revealed that there were five major alliances which accounted for 60% of air travel in the world. These were OneWorld, Star, Sky Team, Wings as well as Qualifier. In addition, diverse scholars have revealed the fact that the global airline industry has experienced elevated dynamics in recent decades. This trend has been occasioned by diverse factors which include globalization as well as market liberalization. Stragier (2001, p. 2) determined that these dynamics in air transport has culminated in the rapid expansion of the airline alliances, mergers and acquisitions (M& As) as well as cooperation between groups of airlines and individual airlines.

The majority of the proponents have argued that M& A in the global airline industry is an ideal tool that is integral in ensuring the survival of individual airlines in the highly dynamic world characterized by globalization. This is founded on the fundamental importance of M& As and alliances in permitting growth, increasing access to new markets, leveraging risks as well as cutting down the cost of operation (Desai, 2011, p.

2). Against this backdrop, this paper will focus on the strategic alliance between Qantas Airlines of Australia and Emirates from Dubai which was instigated in 2012. It will also assess the motives of choosing this method, the strategic and organizational fit between these two parties, the potential gains, and risks as well as the outcomes relative to expectations. Motives for choosing this methodIt is evident that Qantas airlines and Emirates resolved into entering into a strategic alliance rather than an M& A. It is imperative to gain an insight into the generic definition of an alliance in an airline industry point of view.


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