Alliance short film essay
December 2011 Business English Intermediate Level
What are the main reasons of airline companies to form alliances and how the three negotiating parties of the film may benefit from this alliance according to the agreed catering arrangements?
Alliance is one of the most popular forms of companies’ integration in the airline sphere. An airline alliance is an agreement between two or more airlines to cooperate on a substantial level. The special feature of alliance is that companies stay independent in their interests and strategy, in spite of the fact that they have signed an agreement. Making an alliance includes different pros and cons. Let’s consider a situation when two airline companies are planning to make an alliance. What opportunities will such a transaction provide for them?
Firstly, the creation of cooperative links with other airlines can maintain, protect and even improve the positions of a particular company in the market in the conditions of constantly growing competition. Secondly, both of them will benefit from cutting costs on sales offices. They can share this department with each other. Thirdly, they will benefit from reduction of costs on operational staff, like ground handling personnel at check-in and boarding desks. Moreover, they can share operational facilities, for example catering or computer systems. They can also outsource these functions to some third party, which can be included into alliance too as a result.
We have watched a film about similar situation. Two big airline companies – Trans West and Air Pacifica – and a catering company Omega are going to make an alliance. The film shows us different sides of negotiations, during which the three parties are trying to work out suitable terms of transaction. Of course each of the companies is seeking for the most beneficial variant for itself. However, they must make a compromise decision and they managed to do it finally. The alternative terms of trade were found in the end of the
What are the main reasons of airline companies to form alliances and how the three negotiating parties of the film may benefit from this alliance according to the agreed catering arrangements?
Alliance is one of the most popular forms of companies’ integration in the airline sphere. An airline alliance is an agreement between two or more airlines to cooperate on a substantial level. The special feature of alliance is that companies stay independent in their interests and strategy, in spite of the fact that they have signed an agreement. Making an alliance includes different pros and cons. Let’s consider a situation when two airline companies are planning to make an alliance. What opportunities will such a transaction provide for them?
Firstly, the creation of cooperative links with other airlines can maintain, protect and even improve the positions of a particular company in the market in the conditions of constantly growing competition. Secondly, both of them will benefit from cutting costs on sales offices. They can share this department with each other. Thirdly, they will benefit from reduction of costs on operational staff, like ground handling personnel at check-in and boarding desks. Moreover, they can share operational facilities, for example catering or computer systems. They can also outsource these functions to some third party, which can be included into alliance too as a result.
We have watched a film about similar situation. Two big airline companies – Trans West and Air Pacifica – and a catering company Omega are going to make an alliance. The film shows us different sides of negotiations, during which the three parties are trying to work out suitable terms of transaction. Of course each of the companies is seeking for the most beneficial variant for itself. However, they must make a compromise decision and they managed to do it finally. The alternative terms of trade were found in the end of the