Synergies in global airline alliances in terms of resource complementarity and degree of integration

Global airline alliances, in terms of realizing 61.2% of the total scheduled flight traffic in the aviation industry are among the important strategic alliances. The benefits derived from alliances, provide advantages in terms of competition for airlines. This study investigates the benefits derived from the global airline alliances under the concept of synergy and the effective factors in achieving synergies and how these synergies affect the business performance of the airlines in the global airline alliances. In the study, we examine synergies under four classes as operational synergies, market power synergies, financial synergies and management synergies. In this context, first, we examine the effects of resource complementarity and degree of integration of member airlines in the global alliance on achieved synergy types. Second, we examine the effects of obtained different types of synergies on the performance of member airlines. For this purpose, a conceptual model which shows the relationship between complementarity of resources, degree of integration, types of synergy and performance is developed, then the research hypotheses which developed by the model are tested through correlation and regression analyses. The data required for testing of hypotheses were obtained through surveys from top managers of 26 airlines which are members of Star, SkyTeam or oneworld alliance group. In conclusion, firstly, findings indicate that resource complementarity has positive and statistically significant effect on operational synergies, market power synergies, financial synergies and management synergies while integration degree has no effect on all types of synergy and the performance. Secondly, we find positive and statistically significant effect of market power synergies, financial synergies and management synergies on the performance while we did not find any effect of operational synergies on the performance. In the context of relationships examined, the analysis revealed that the management synergies are the most important synergies for global airline alliances.