This chapter explains the concept of virtual joint venture model. In a virtual joint venture, companies combine parts of their businesses and operate them as if a separate company—but do not create an independent legal entity. Essentially, companies collaborate and pool their profits, which are shared based on an agreed‐on allocation mechanism. The virtual joint venture is the accountable entity and its goal is to optimize profits. The virtual joint venture model has been most successful in the Air France/KLM, Delta Airlines, and Alitalia alliance. It is pointed out that by combining route networks and ensuring easier transfers, airlines can offer more destinations and better service to their passengers, typically through code sharing, which allows passengers from more than one airline to be transported in one plane. Structural aspects of the alliance are one part of the explanation. The 50/50 profit sharing and the alignment of incentives that is connected to the alliance clearly form the basis of its stability.


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    Titel :

    The virtual joint venture model: Air France/KLM, Delta Airlines, and Alitalia


    Beteiligte:
    de Man, Ard‐Pieter (Herausgeber:in)

    Erschienen in:

    Alliances ; 101-119


    Erscheinungsdatum :

    2012-01-02


    Format / Umfang :

    19 pages




    Medientyp :

    Aufsatz/Kapitel (Buch)


    Format :

    Elektronische Ressource


    Sprache :

    Englisch