Demonstrate The Application Prospects Of The Franchise In The Airline Alliance Strategy

The paper discusses the questions on three levels. Firstly, as the increasing development of "liberalization", "privatization" and even "globalization" in air transport industry, in order to seek chance to survival and development as well as to exploit and partition global air transportation, what kinds of alliance strategies have been employed by the airlines? Secondly, for such a variety of alliance strategies, why have some strategies gone to bankruptcy? Thirdly, what is the background and how about the outlook for airline franchising? What are the main advantages and disadvantages of franchising for every party? Results showed that strategic alliances are implemented under the big context of "open sky" polices. While the attraction of pure equity participation has declined, most of the airline alliances are based on codesharing. Globally speaking, franchising has become the important part of strengthening airlines' hub-and-spoke network. However, franchising would be succeeding in the future as long as we take the broader aerial environment into consideration. Nationally speaking, franchising can be seen as a suitable adoption between major airlines in the hub and feed carriers in the spoke. The research identified the outlook for franchised operation in Chinese airlines.