Conclusion The airline industry remains under more economic restrictions than

Conclusion the airline industry remains under more

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subsequently gave up its efforts to restructure the acquisition. Conclusion The airline industry remains under more economic restrictions than most other industries, especially with limits of foreign ownership that almost universally prohibit a foreign citizen from owning or exercising control of a domestic carrier, thus preventing the formation of truly multinational airlines. Faced with the likely failure of General Motors and Chrysler during the Great Recession of 2008, the US federal government bailed out both. The Italian auto maker Fiat was enlisted to take control of Chrysler Motors Corporation. Fiat plans to purchase the United Autoworkers stake in Chrysler in 2014 making Chrysler a wholly-owned subsidiary. A similar arrangement, however, is not possible in the airline industry. US airline consolidation promises to put the US industry in a position of sustained profitability and stability comparable to other large industries, but consistent profitability eludes most of the world’s airlines. The era of multinational airlines has yet to arrive, but could provide for a more predictable, less turbulent industry than has been achieved through global alliances.
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International Air Transportation and Public Policy 266 References Air route authority between the United States and China. (n.d.) Wikipedia . Alliances strategies. (n.d.) Airlines Gates. Retrieved from Anonymous. (2004). USA and China free markets. Airline Business , 20(7), 8. Baigorri, M., & Rothwell, S. (2012, February 2). Turbulence for Europe’s state-owned airlines. Bloomberg Businessweek Magazine . Retrieved from - 02022012.html Brueckner, J. K. (2003). International airfares and the age of alliance: the effects of codesharing and antitrust immunity. The Review of Economics and Statistics , 85(1), 105-118. Crowe, D., & Munoz, S. S. (2013, November 6). Avianca’s comeback trip: From tragedy to the NYSE. Wall Street Journal , p. B.1. Etihad is building a fourth alliance. (2013, December 2). The Cranky Flier . Retrieved from Heathrow Airport’s slot machine: hitting the jackpot again? (2013, May 8). CAPA Centre for Aviation . Retrieved from - jackpot-again-108646 Ito, H. & Lee, D. (2005). Domestic codesharing practices in the US airline industry. Journal of Air Transport Management, 11(2), 89-97. Karp, A. (2013, December). Avianca’s aspirations. Air Transport World , 20-24. Lufthansa Group. (n.d.). Retrieved from Open Skies Partners. (2013, August 19). U.S. Department of State. Retrieved from Porter, M. (1990): The Competitive Advantage of Nations, New York, Free Press. Qantas and Emirates to codeshare in the first alliance shakeup of the season; next: Qatar into oneworld.
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