The Rise of the Mileage Programs: The Case of Korean Air Alliances - Dissertation Example

Conclusion 33 Recommendations 34 Limitations and Opportunities for Future Study 35 References 37 List of Tables Serial No. Topic Page No. Table 1. Top 15 Airlines by International Traffic (ASKs) 17 Oct 2011- 23 Oct 2011 28 List of Figures Serial No. Topic Page No. Figure 1. Redemption Rates of Korean Airlines 24 CHAPTER 1: INTRODUCTION: The beginning of 2012 marked the modification of airlines. Airlines have adopted mileage programs that accrue frequent-flyer kilometers or miles matching the expanse flown on an airline or partners.

The past few years also marked several partnerships and coalitions between airlines (Latrou & Oretti, 2007, p. 127). This has led to significant development of airline alliances. Airline alliances or partnerships refer to the concurrence between airlines to work together at a considerable level. Such alliances provide international passengers with a set of connections and conveniences. These airline alliances are also noted to aid in marketing and brand improvement through their connections to other countries (Petersen & Winship, 2005, p. 156). Sky Team is an alliance that consists of Korean Airline, Aeromexico, Aeroflot, Air Europa, Middle East Airlines and Kenya Airways.

Sky Team has also adopted the use of mileage program. The passengers have greatly benefited from Sky Team airline alliance mileage program (DIANE Publishing Company, 1996, p. 212). Largely because of the growth of international tourism and the globalization of economic activities, the demand for air travel among countries across the world has rapidly increased. Vedder (2008, p. 67) notes that there has been a notable increase in passenger traffic over the past few years to and. This has led to significant development of airline alliances.

Airline alliances or partnerships refer to the concurrence between airlines to work together at a considerable level. Such alliances provide international passengers with a set of connections and conveniences. These airline alliances are also noted to aid in marketing and brand improvement through their connections to other countries. Sky Team is an alliance that consists of Korean Airline, Aeromexico, Aeroflot, Air Europa, Middle East Airlines and Kenya Airways. Sky Team has also adopted the use of mileage program.

The passengers have greatly benefited from Sky Team airline alliance mileage program. Largely because of the growth of international tourism and the globalization of economic activities, the demand for air travel among countries across the world has rapidly increased. Vedder notes that there has been a notable increase in passenger traffic over the past few years to and from Korea. Airlines have cooperated and collaborated with their rivals to remain aggressive and mutually grow into international market.

It may seem difficult and downright challenging for an organization to make it in a very competitive business industry. In reference to Gossling et al., the process of collaboration is a significant approach to not only reducing risks but also maintaining customer care, brand loyalty and creating brand awareness.