The Strategic Alliance in the Airline Industry of the United Kingdom - Essay Example

The global airline industry is one of the largest in terms of capital invested and revenue generated among other related industries. But it is also one of the most competitive and highly regulated industries in the world. Deregulation of ownership in many countries during the last few decades had opened up the sky to many privately owned airline companies. But this deregulation also resulted in the proliferation of new companies that joined the fray in the hope of making profits.

The industry had undergone a major shock and shake-up after the 9/11 attacks in the United States. These attacks prompted the US and other governments to put in more stringent laws in the airline industry especially with regard to security. Checks increased and many items that could previously be carried by passengers while travelling were prohibited on board. This was prompted in part by the London bombings a few years later. Many companies filed for bankruptcy while the number of people travelling by air fell drastically for a short period of time.

Earlier, the introduction of low-cost airlines initially in the United States and later in other parts of the world also had a negative impact on traditional operators. The rising cost of aviation fuel and the general slowdown of the world economy has also compounded the problems faced by many state and privately owned airline companies. But most competitive and efficiently operated companies have found ways to solve or at the least mitigate the problems caused by these events and circumstances.

They usually do this by resorting to mergers and acquisitions or by forming strategic alliances with other airlines and service providers. This paper is a study of such strategic alliances in the airline industry. The study will review the literature on strategic alliances in general and the airline industry in particular. The role of or the effect on human resource management in the case of an alliance will also form part of the study. 
Over a period of years, the concept of forming strategic alliances in the airline industry has been an accepted strategy to increase profitability, operational efficiency, and competitiveness.