Research Of FFP Cooperation Strategy For Shanghai Airlines In Airline Aliiance

Frequent Flyer Program is the most common competitive method between airlines to attract and hold the passengers; the FFP between airlines, plus the code share flights, increases the airlines'attractiveness to the customers. The FFP based on the alliance of airlines, makes the scramble of customers extending into the level of different alliances. This thesis focuses on the cooperation problem of FFP.At first, this thesis will discuss the civil aviation transportation in China which is developed rapidly, and the Chinese airlines who is taking its place in the world; the detailed data in this thesis can prove that, Chinese aviation transportation is rising, and China is becoming the great aviation power in the world. And then the thesis discuss the main business mode in alliance: such as code share flight, Frequent Flyer Program, and also gives a great detail in the project of FFP cooperation between Shanghai Airlines and Star Alliance, and the profit model, cost model, benefit calculation formula of this project has been given.The thesis also makes the research of behavior within the passengers and the factors of flights they chose, which point out that the airlines should pay more attention on the factors ,which are most concerned by the passengers such as the safety, the time, the service and so on, instead of depending on the stimulated effect of FFP. During the game of FFP cooperation, the model of bargain between two person is applied, the thesis discuses the process and result of the game in the different situation, and the better strategy of the weaker one in this game has been mentioned. Specially, the thesis also does the research of Star alliance new member: Shanghai airlines's FFP cooperation game and its improved strategy. The suggestion and solution of improvement about business issue of shanghai airlines'FFP have also been given.