ABSTRACT

Airlines are vital for a nation’s competitiveness in the global economy, yet the airline industry is undergoing significant restructuring through consolidation making it difficult for regional airlines to survive. This case study illustrates the engagement of airline partnerships necessary to maintain global connections. Through a relationship metaphor, the case illustrates the ebb and flow of strategic partnerships that create networked patterns of interconnectedness This chapter suggests that the dominant motivation is to achieve scale economies which is off-set by the instability these alliances cause. There is a need for longer term alliances based upon trust and quality of relationships that now characterize the networked economy.