The Role of Strategic Airline Alliances in Africa

This paper considers the impact of strategic airline alliances on African aviation. Globally, there has been an ongoing trend towards airlines coordinating their activities via strategic alliances and joint ventures. These alliances affect market competition, including the quality and costs of services provided. Despite the economic benefits found in prior analyses of alliances in other markets, the study of alliance participation by African airlines is very limited. Our empirical analysis indicates that membership of one of the three global alliances could, by expanding their market presence, benefit African airlines. It would add to their passenger flows and enhance their economic efficiency.