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Brand Alliances benefits from consumer perception on example of Qatar
Airways in OneWorld.
Introduction
Key words: Brand Alliances, Qatar Airways, OneWorld, Air travel, consumer perception
A lot of research has been done on the benefits of brand alliances for companies. In this paper,
the advantages of brand alliances on the part of clients will be focused. First of all, the advantages for
business class passengers will be revealed, as they are regular customers of airlines. The results of
studies in this paper show that Qatar Airways passengers receive many privileges from alliances in
OneWorld. This topic is relevant, since Qatar Airways is considering withdrawal from the alliance in
connection with the problem with its American partners.
Brand alliances are one of the popular and vital trends of the 21st century. In the competitive
age of globalization, for greater profits and for the effective work of companies in different spheres:
starting from manufacturing to services, they are united into one alliance [1]. Establishing strategic
communications companies can get many benefits [2].
Literature review
This trend is also developed in the airline industry [3]. One example is OneWorld, which was
founded on 1 February 1999 and has 13 airline company members, 3 447 fleet and carry 527.9 million
passengers all over the world [4].
Research in the field of alliances was made mainly for companies and for their development
strategies, types of alliances, problems in regulation for management, choosing the right partner and
difficulties in integrating alliances [5]. Previous studies show the benefits of unions for companies
from firm perspective [6]. Market difficulties and political, cultural differences, as well as financial
advantages were investigated at a high level [7]. There is a lack of studies about benefits from
consumer perceptions.
In this paper, the focus will be on the benefits of passengers according to the passengers
themselves on example of Qatar Airways passengers. More specifically, the answers to the questions
will be given: what advantages do passengers receive from alliances? Are these advantages so
important? Is it allied to OneWorld as the main factor in choosing an airline?
Due to the fact that airline brand alliances have appeared recently, there is very little literature
and scientific work on this. Below are a few privileges that were taken from official sites of OneWorld
and Star Alliance.
Main body
The main advantages common to both alliances are: (a) increased access to the network; (b)
transferred priority status; (c) seamless travel; (d) an expanded frequent flyer program (FFP) and (e)
developed access to the living room benefits.
(a) Increased access to the network. Wider route networks should attract passengers because
of travelers' preference for extensive networks [8]. Offering a wide range of services companies can
retain customers through relationship networks which together add value to the offer. Therefore, the
airline must be able to give greater value to customers, expanding their network of relationships with
other airlines. Also, alliances can offer more routes than airlines that do not belong to any alliances
[9].
(b) Transferred priority status. Airlines often have preferential treatment in the form of priority
check-in, baggage handling, waiting list for reservation and waiting at the airport to save most valuable
customers. For the consumer, priority status is achieved through one alliance, membership is now
extended to all partner airlines, offering greater access to priority in many airlines.
(c) Seamless travel. One of the biggest privileges of alliances is that they offer smooth travel
[10]. In the language of aviation, this is called as code sharing, when two or more airlines use and
market flight under their flight number and designator. Code sharing is a key feature of airline
alliances [11] and it is a consumer-based and consumer-oriented initiative [12]. One and the main
benefit of code-sharing is connected flights, when customer can book flight from point A to C through
point B by using one code, instead of a booking from point A to B then from B to C.
Moreover, passengers avoid to miss connections and loss a baggage [13]. It also increases the
service level. In addition to that, if passenger decides to change the destination in the last minute, he
can choose other destinations, which alliance can offer. This benefit is very important for passengers,
who have long-haul and non-direct flights [14].
(d) An expanded frequent flyer program (FFP). Frequent-flyer program is a loyalty program;
which airline or alliance offers. By using this program, passengers can earn points, which will be
transferred as rewards. These points are counted depending on class of fare, amount paid and type of
