STRATEGIC AIRLINE ALLIANCES AS A SPECIAL FORM OF COMPANY INTEGRATION

• Main Authors: Oksana Kyrylenko, Viktoria Riazanovska, Valentina Novak
• Format: Article
• Language: English
• Published: Izdevnieciba “Baltija Publishing” 2019-03-01
• Series: Baltic Journal of Economic Studies
• Subjects: strategic alliance, airline alliance, international strategic alliances, transport, management
• Online Access: http://www.baltijapublishing.lv/index.php/issue/article/view/602
• ISSN: 2256-0742; 2256-0963

The purpose of the article is to analyse the world practice of organization and functioning of strategic alliances as one of the forms of integration of companies and consider the peculiarities of their functioning, including in aviation. Initially, their creation was aimed at achieving comparatively simple goals such as regional or global coordination of sales or distribution of innovations and new proprietary technologies in related industries. Economic motivation was to reduce the cost of global marketing or the spread of technology, as well as to increase sales through stable partnerships or cooperative ties. Subsequently, international strategic alliances have continued. The methodology of the research is the position on the theory of enterprise management, as well as the methods of differentiated and component analysis for the scientific definition of the term “strategic analysis.” It also describes the differences in strategic alliances from other organizational forms of company integration. The results prove that global competition is not the only reason for the creation of international strategic alliances. The market conditions and technological factors of development, which are derived from the determination and properties of alliances themselves, are determined, but at the same time, they have their own peculiarities, which are dictated by the state of economic life. The emergence of alliances was the result of increased global competition, and especially non-price. However, global competition is not the only reason for the creation of international strategic alliances. In addition, it is also useful to refer to market conditions and technological development factors that derive from the definition and properties of the alliances themselves, but at the same time, they have their own peculiarities that are dictated by the state of the economy. It is practically grounded that one of the motives for the creation and effective development of strategic alliances in the aviation sector is the possibility of improving the level of service. The main problems of creating alliances, regularities of successful functioning, and the main causes of the collapse of alliances are described. Value/originality. Based on the analysis of the problems that arise in the functioning of alliances, the authors proposed some ways to solve these problems and, accordingly, overcome the causes of the collapse of international strategic alliances.