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As Porter explains, it is a measure of competitiveness (Blyton, Lucio, McGurk, & Turnbull, Kraaijenbrink & 2011; Snowdon, 2011). This relationship influenced other competitors such as Lufthansa to merge with another airline to dominate a particular market ( 2007). The arrangement of an entity-based contract will allow data to be shared seamlessly using IT for easy payments and bookings (Flouris & ). However, as global discrete networks become multilateral and complex there is no assurance that an alliance will be effective and competitive with other newly formed networks (Blyton et al., . This type of organisation will be risky for the Skyteam alliance and could be costly long term (Lin ).


Reference List

Blyton, P., Lucio, M. M., McGurk, J., & Turnbull, P. (2001). Globalization and trade union strategy: Industrial restructuring and human resource management in the international civil aviation industry. International Journal of Human Resource Management, 12(3), 445-463. doi: 10.1080/09585190010026239


Capaldo, A. (2007). Network structure and innovation: The leveraging of dual network as a distinctive relational capability. Strategic Management Journal, 28(6), 585-608. doi: 10.1002/smj.621


Flouris, T. G., & Oswald, S. L. (2006). Designing and executing strategy in aviation management. Hampshire, England: Ashgate Publishing Limited.


Kraaijenbrink, J., & Spender, J. C. (2011). Why competitive strategy succeeds - and with whom. In R. Huggins & H. Izushi (Eds.), Competition, competitive advantage, and clusters: The ideas of Michael Porter (pp. 33-55). New York, NY: Oxford University Press Inc.


Lin, Y. H., & Chang, Y. H. (2008). Significant factors of aviation insurance and risk management strategy: An empirical study of Taiwanese airline carriers. Risk Analysis, 28(2), 453-461. doi: 10.1111/j.1539-6924.2008.01036.x


Snowdon, B. (2011). The growth and competitiveness of nations: Porter's contribution. In R. Huggins & H. Izushi (Eds.), Competition, competitive advantage, and clusters: The ideas of Michael Porter (pp. 149-169). New York, NY: Oxford University Press Inc.