The effects of alliance strategy of Ethiopian aviation group on its operation: the case of Star Alliance

Abstract

Strategic alliance are becoming the reality of the contemporary world so as to serve any sector as optimum as possible with the collaborative activities that brings synergy and brings the concept of optimization of resources, finance, time, and others for the organization itself as well as the clients of the given organization. In the airline industry, it has been since a while that airline’s create constellations each other to provide esteemed service to passengers, product development, wining market competition, network optimization as well as cost minimization through economies of scale, sharing of resources, harmonized sells and marketing structure, brand and quality of service. The paper intention is to provide the impacts of alliance strategy of Ethiopian aviation group after join of Star Alliance; its competiveness role, performance outcomes, operational effects. Moreover, the study used mixed research design method to measure the star alliance effect on the operation of Ethiopian aviation group. Further, the findings show that, the impact of star alliance is significant in changing positively the customer service role, the market development and revenue increment. Finally, the results found suggested that to work more aggressively to outperform from the competitors ’ side by bringing attention on starting all core values of star alliance operations as well as in widening the loyalty customers.