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The Effects of Joining Airline Alliance on Companies Performance
The market of civil aviation services is extremely dynamic and highly influenced by the global economic environment. The contribution of it in local, regional and global economy consists of direct and multiplicative effects of related industries. Currently, airlines are forced to operate in the mode of maximum cost reduction. They build their strategies taking into account the focus to preserve and strengthen the loyalty of passengers. The branch of the world economy — that is naturally global but yet almost avoids the processes of globalization — is air transportation. Airlines within the Alliance retain their legal independence, but at the same time unify such elements as booking system, bonus program for passengers, joint flights and coordination of the flight schedule. The reason for the aviation alliances appearance is the air transport regulation at the national level. Alliances between airlines form a constituent part of competitive advantage creation, costs reduction, and expansion of flights’ destinations. Current research investigated the impact of air companie’s entrance to the world Allianes due to the event study. The event study was performed by three different models .The research compared results from all models. The paper analyzed the data for the last 10 years of the three largest world alliances: One world Alliance, SkyTeam Alliance and Star Alliance. From obtained result we can conclude that the entrance to the Alliance has, in general, statistically significant impact on companies capitalization not only for companies which join Alliance but also for Alliance members.