A comparative performance analysis of airline strategic alliances using data envelopment analysis

• We evaluate the comparative efficiency of the strategic alliances among global airlines.
• We develop DEA models to evaluate airline operating efficiency.
• We assess the managerial impact of airline alliances on the airline's comparative performances.
• Airline alliances did not necessarily improve the participating airline's comparative operating efficiency.
• A smaller alliance group tended to outperform a larger alliance group.

As “open skies” agreements became more common among different countries and thus began to open up international routes to further competition, the global airline industry has undergone accelerated structural changes for the last two decades. These changes include the consolidation and expansion of airline strategic alliances throughout different regions of the world. Though airline strategic alliances are generally perceived to be a major driver for enhancing the operating efficiency and the subsequent competitiveness of participating member airlines, the concrete evidence supporting such a perception is still lacking in the literature. This paper is one of few attempts to evaluate the comparative efficiency of the strategic alliances among global airlines and then assess the managerial impact of airline alliances on the airline's comparative performances.