The notion of companies collaborating for their mutual benefit through the
formation of strategic alliances has gained credibility in recent years and
international airlines have been very active in utilising this form of str
ategic development. This paper explores the available literature on allianc
es, explores the underlying motivations for their formation and presents a
conceptualisation of the stages involved from their inception to the measur
ement of success or failure. The paper concludes that the benefits on the p
art of the airlines appear clear but the potential benefits to be derived b
y consumers are less obvious. Nevertheless, given the regulatory and legal
constraints preventing other forms of development airline alliances, it is
argued, are not a transitory feature of the international airline industry
but long-term inter-organisational forms and key future trends in their dev
elopment are presented. (C) 2001 Published by Elsevier Science Ltd.