Solved: Alliances for Southwest Airlines Strategic alliances Acquisitions Mergers

Alliances for Southwest Airlines

Strategic alliances

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Joint ventures

License agreements

Management agreements



If none what would you suggest? Why?

Expert Answer

As far the strategic alliances are concerned, Southwest Airlines have been into such alliances with the Mexican airline Volaris which has resulted in an expansion in the markets of Guadalajara, Morelia, Toluca/Mexico City and Zacatecas. Moreover, it has acquired quite a few airlines in the past. For example, in 1985 Muse Air was acquired by Southwest, in 1993, Morris Air, in 2008 few assets of bankrupt ATA Airlines, and in 2010 it acquired AirTran. AirTran was bought by Southwest as a wholly owned subsidiary. The intended strategy of the company was to expand into the international markets including Cancun, Mexico, Bermuda, Bahamas, Jamaica, Punta Canta, Puerto Rico, and Aruba.

As far as Joint Ventures are concerned, Southwest is having a JV with a Mexican airline, Volaris, in order to offer the customers the ability to book their Mexican travel to certain destinations all at the company website. The customers check in with both carriers while the bags will seamlessly be conveyed from one airline to the other. Furthermore, Southwest is also exploring new possibilities of making alliances within the MRO market to take advantage of available offerings as in the long-term, it’s important to have relationships with the technology companies that are out there developing repairs and maintenance.

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