Modelling strategic alliances in the wide-body long range aircraft market

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

The wide-body long-range aircrafts market is characterized by increasing rivalry between Airbus and Boeing. One of the factors that drive their strategic behaviour is technological. We propose a technology indicator to identify conditions under which the aircraft companies have incentives to join a coalition. For this, we provide measurement of the side-payments necessary to sign a strategic alliance aimed at reducing technological barriers in the market. The results suggest that the existence of side-payments guarantees the stability of a strategic alliance if the gap in the technological level between the firms is high, or competition is through prices. For monopoly, a strategic alliance is profitable, but never stable.
Original languageEnglish
Pages (from-to)139-148
Number of pages10
JournalJournal of Air Transport Management
Volume13
Publication statusPublished - 2007

All Science Journal Classification (ASJC) codes

  • Transportation
  • Strategy and Management
  • Management, Monitoring, Policy and Law
  • Law

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