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A Case Study on Swissairs Alliances

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Introduction & Growth

Only 22 % equity owned by Swiss

Authority
Founded in 1931 to serve mainly

central European Locations

1949- It became National Career 1970- Started Operation to other

locations( South Africa, South America and Asia)

1990- Among Top 20 Airlines
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Products and Prices

Started with only European Countries Product Line

- Coach , Economy , Business and First Class

Attracted only to Business Travelers Premium Pricing Guaranteed Quality Different type of unique services on

board to attract customers

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Cost Structure
Higher Wages and Operating Cost More Employee centric Primary cost- Aircrafts Secondary cost includes salary and

wages
Heavily Invested in CRS(Computer

Reservation Systems namedTraviswisss, Apollo, Galileo)

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International Airline Industry and Govt. Regulations

IATA- 157 Members in 1989 25 % Flew Internationally Growing at the rate of around 10 % Deregulation in 1990 Aviation Service Agreement (ASA)-

Appropriate Fares
Right to Cabotage to protect

domestic airlines
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Production Inputs and Distributions

Major portion Labour , Fuel ,

Maintenance,
Purchased local Repair Capacity Role of Travel Agents Development of Different CRS Co- Hosting Global Expansions Hub and Spoke route system- Using

Airports as central hubs

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Competitors Analysis
Air France Deustche Luftansa British Airways KLM Royal Dutch Interline Cooperation 1992 Fears- EC Cabotage

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Swissairs Alliances
Checklist of 85 Strength and

Weaknesses
Global Alliance

- Delta Airlines - Singapore International Airlines

Trilateral Venture The European Quality Alliances
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Conclusion

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