ABSTRACT

While horizontal cooperation of air carriers in the form of international alliances was historically typical of full service network carriers, on the present, the trend towards closer horizontal cooperation in the form of alliances is observed in the segment of low-cost carriers, too. In the paper, we discuss motives and potential impacts of horizontal cooperation among allied low-cost carriers using the case of Value Alliance, the international alliance established by eight Asian low-cost airlines in 2016. The newly allied partners in Value Alliance are investigated with regard to the attributes of business models and geographical patterns of their operation. Based on the findings, we can assume that intensifying mutual horizontal cooperation of airlines, including low-cost ones, will be among the leading phenomena in the air transport industry. This will contribute to even higher complexity of the industry what will shape significantly the global competition of airlines.