A Comparative Performance Analysis of Airline Strategic Alliances: In a Search for Coopetition Drivers through DEA

Iryna Heiets and Hanna Shvindina

A chapter in Competitiveness in the New Era from IntechOpen

Abstract: The purpose of this research is to investigate the efficiency of the Airline-within-Airline business model (a form of coopetition) in the rapidly growing airline industry and compare it to other business models. The core question addressed in this study is how coopetition impacts organizational performance and whether it brings measurable economic benefits. Data Envelopment Analysis (DEA) is the primary methodology to assess the outcomes of strategic alliances in the airline industry. A dataset comprising records for 52 Airlines structured into 25 decision-making units (DMUs) is utilized for this analysis. Our findings suggest that coopetition brings measurable economic benefits in terms of organizational performance. The Airline-within-Airline business model, in particular, is examined, and its efficiency is compared to other models. As a result, all airlines were divided into three groups by their efficiency, which allowed the formation of a pull of possible partners for further strategic partnerships. In conclusion, this research highlights the potential economic advantages of coopetition within the airline industry, shedding light on the drivers of coopetitive interactions. It underscores the importance of considering coopetition as a viable framework for enhancing organizational performance and market competitiveness. Only a few studies were accomplished measuring the efficiency of business models with a focus on strategic alliances, network cooperation, and coopetition. This research enables the selection of strategic partners and the final choice of the partner for possible coopetitive partnerships based on data-driven assessment.

Keywords: competition; coopetition; strategic alliances; airline-within-airline; data envelopment analysis; DEA (search for similar items in EconPapers)
JEL-codes: Q56 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ito:pchaps:318986

DOI: 10.5772/intechopen.113350

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