The Research On Partner Selection Of Airline Company Strategic Alliance And Cooperation Management

With the rapid development of airline markets from 1980's, airline industryhas and is undergoing many kinds of reform and recombination throughout theworld. One of those reforms and combinations is airline strategic alliance, whichhas been attracted by researchers and practicers. It may be found that theexisting researches are focused on classification, motivations and effects ofairline strategic alliance, but lack of establishment and operations. It is thereforeimperative to research how to found and operate an effective airline strategicalliance.Three new models to select alliance partners was proposed, which arenamed dynamic model for determining evaluation index and weight (DMEIW),rational process model (RPM) and bounded rationality process model (BRPM)for selecting airline strategic alliance partners. Existing research on selection ofairline strategic alliance partners is few and fit for specialized case. There is nogeneric and dynamic model for selecting airline strategic alliance partners.DMEIW is characterized by universality and dynamic. DMEIW may determinea generic evaluation indexes based on (1) features of airline market, (2) possibleaim of airline strategic alliance, (3) general activities to select airline strategicalliance partners, (4) principles for establishing evaluation indexes. For aspecific airline strategic alliance, the general activities to select airline strategicalliance partners may be divided into three kinds of activities: success-winner,success-qualifier, and success-neglecter. Based on the three kinds of activitiesand aim of the airline strategic alliance, DMEIW may determine the weight ofeach index in universal evaluation indexes.Partner selection of airline strategic alliance is in essential a problem ofdecision-making with multi-object and multi-criteria. There is, however, noapplication of multi-object and multi-criteria decision-making theories to partnerselection of airline strategic alliance. RPM and BRPM were proposed by meansof process theories of rational and bounded rational decision paradigm. RPMconsists of seven stages to evaluate and select partners. BRPM extended fromRPM with more practicability.Negotiation model and benefits distribution mechanism, which may directairline strategic alliance to correctly distribute profits, was proposed. Benefits distribution is a key issue with prominent conflicts among partners, which mayhamper the development of airline strategic alliance. By analyzingincompleteness of alliance contract and using Game Theory, negotiation modelsbetween two partners and among several partners were established, and benefitsdistribution mechanism was advanced.Determinant model of success learning in airline strategic alliance, andstrategies to enhance learning capacity were proposed. By means of SourceTheory and Value Net Theory, the relationships among partners in airlinestrategic alliance were analyzed and it was found that cooperation andcompetitiveness are co-existed and that the ways to realize cooperation andcompetitiveness are learning and risk precautions. Determinant model of successlearning shows that capacities to access and comprehend knowledge of anairline company in airline strategic alliance are jointly determined bytransparency of partner and its own receptivity. The transparency is guided bythree kinds of determinants related to partner, relationships among partners, andcharacteristics of knowledge learned. The receptivity is also guided by threekinds of determinants related to the company, employee of the company, andcharacteristics of knowledge learned. Strategies to enhance learning capacityconsist of six items strategies related to each level of the company.After analyzing possible risks faced by an airline company in strategicalliance and analyzing characteristics of sources devoted by the company to thealliance, four kinds of strategies for risk precautions were proposed, whichconsists of (1) control-strengthen, (2) flexibility-increase, (3)transparency-moderate, and (4) efficiency-strengthen. The four kinds ofstrategies may be applicable to different kinds of risks and sources, and needdifferent technologies and methods to implement.The above models proposed were illustrated by South China Airline takingpart in Skyteam Alliance, and finally the industry policy to facilitate Chineseairline industry develop were proposed by means of these models.