ABSTRACT
This chapter gives a theoretical comparison of Integration and Cooperation as strategic options for airlines. The analyses build on the ideas of the market-based view, the resource-based view and a transaction cost assessment. It is shown that due to the significance of economies of density and the coordinative effort in attaining these, an overlapping character of route networks tends to require integrative coordination, i.e. M&A transactions. This supports the thesis that further deregulation of international air travel will result in significant concentration efforts.
