International Aviation
Airline Alliances Produce Benefits, But Effect on Competition Is Uncertain
Description:... Between 1987 and 1993, the number of passengers traveling on U.S. airlines between the U.S. and foreign destinations increased 47%, while domestic traffic increased by only 6%. The airlines have entered into alliances with foreign airlines rather than starting new service to additional foreign cities. This report examines the effects of marketing alliances between U.S. and foreign airlines on airlines' traffic flows and revenues and on consumers, and identifies the key issues concerning such alliances that need to be addressed by the Dept. of Transportation.
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