Developing an integrated model for the selection of strategic alliance partners in the airline industry

This study proposes a hybrid model to help airlines select suitable partners for strategic alliances. The model addresses the interdependency and feedback effects between criteria and alternatives by using the Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Network Process (ANP). Decision-makers may hold diverse opinions and preferences due to incomplete information, differences in knowledge or simply inherent conflicts between various departments. This can make it difficult to judge the importance of the selection criteria. To remedy the problem we further apply Fuzzy Preference Programming (FPP) to integrate the different expert opinions. The proposed model can help practitioners improve their decision making process, especially when criteria and alternatives are numerous and inter-related. The method is demonstrated using data from a Taiwanese airline. Specific companies can easily extend this generic model to address their individual needs.

► We proposed an integrated model to help firms select partners for strategic alliance.
► The model addresses the interdependency and feedback effects using DEMATEL and ANP.
► We also consider the decision-makers’ diverse opinions through FPP.
► The hybrid model can help airlines improve their decision making process.