The effect of airline alliances on the performance of airline companies: The case of Star Alliance

Increasing competition rates, deregulations and liberalizations with the effect of globalization have led to numerous changes in aviation as well as in many sectors. Aircrafts have faced various changes in reaction to this changing and increasing competitive environment. Most airline companies within the world have sought new strategies to survive within the market and to protect themselves from the negative effects of these changes, and international airline alliances have emerged as a result of a situation. This study is a case on the Star Alliance, which is the world's biggest international airline alliance nowadays. The effects of Star Alliance on the performance of airline companies were examined. In arrange to shift the center of gravity of aviation from west to east and to make territorial differences, Air China, Turkish Airlines and Ethiopian Airlines were selected as the sample group among the member airlines of the Star Alliance. From a financial and operational point of view, assessments were made on various parameters based on the three years before and after the airlines joined the Star Alliance. As a result of the research, while the positive effects of Star Alliance on the performance of the pertinent airlines were observed in operational data, positive results were not observed in financial information.