Competing Through Alliances in the Airline Industry: The Air France-KLM / Delta Air Lines Joint Venture

Air France KLM and Delta Airlines formed a revenue and cost sharing Joint Venture that includes all transatlantic routes of the two airlines. In 2011, this joint venture generated sales of over ¤ 12 billion. The case describes the airline industry, focusing in particular on the fact that airlines have formed alliances and joint ventures on a scale unheard of in other industries. It then presents Air France KLM and Delta, the partner firms, and provides a detailed description of their joint venture, its organization, structure and operations. It also mentions tensions that have arisen between the partners over time.
Participants are asked to analyze the data in the case from the point of view of the Air France KLM management, analyze what the JV contributes to Air France KLM, identify sources of conflict and potential threats and finally suggest changes to the JV agreement that can resolve these issues.

This case can be used in a standard 90-120 minute Strategy MBA class but also in typical half day executive education session. The objectives of this case are to help students or participants understand:
- The economics of a very unattractive industry
- How alliances are used strategically to enhance revenues and reduce costs in this industry
- How collaboration can be structured and governed to achieve the desired outcomes
- How strategic decisions by one alliance partner can affect the stability of the alliance

Business strategy, Industry analysis, Strategic alliance, Joint venture, Airline industry

Grande Ecole, Masters in management, MBA and Executive Education participants

Airline Industry

Année de la problématique : 2012

Livraison : Livraison par lien de téléchargement

Nombre de pages : 27