Why are alliances in the airline industry unstable?
A) Unstable industries make for unstable alliances.
B) The potential for firms to take opportunistic actions is too widespread.
C) The industry is declining and profits are not sufficient to divide among alliance partners.
D) The alliances require cooperation among firms that must also compete with one another.

Question

Quizplus · Accepted Answer

Alliances in the airline industry require cooperation among firms that must also compete with one another. This inherent conflict of interests can lead to instability within the alliance as firms may prioritize their own interests over the success of the alliance as a whole. Additionally, changes in the industry or individual firms' strategies can also destabilize alliances over time.

Why Are Alliances in the Airline Industry Unstable