EXPLORING THE ROLE OF ALLIANCES, AGREEMENTS AND PARTNERSHIPS IN THE AIRLINE INDUSTRY; THE CASE OF APG NETWORK WITHIN THE ROMANIAN MARKET

• Main Authors: CAMELIA MONICA GHEORGHE, DORIN IVAȘCU, MIHAI SEBEA, CRISTINA STOENESCU
• Format: Article
• Language: English
• Published: Academica Brâncuşi 2017-08-01
• Series: Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie
• Subjects: airline alliances; GSA; airline representation; network; APG
• Online Access: http://www.utgjiu.ro/revista/ec/pdf/2017-04/22_Gheorghe,%20Ivascu.pdf

During the last years, the airline industry had a dynamic evolution, due to significant changes such as: the liberalization of air traffic with two important consequences, the development of the hub and spoke model, as well as the emergence of low-cost companies; the commercialization and privatization of airports; the evolution of technology. In order to be competitive in this new context, taking part of an alliance or network, creating a partnership or an agreement became a key strategy for airlines and as well as other stakeholders involved. This article examines the different partnerships in the airline industry, starting from code-share agreements between airlines or the emergence of airline alliances as a consequence of the hub and spoke system up to the more recent airline-airports partnerships, code-share agreements involving low-cost companies or airline representation agreements for several (new) markets. The case study of APG Network will be examined, in order to emphasize the role of GSAs (General Sales Agents) in the development strategy of airlines. Moreover, a questionnaire was distributed among travel agencies and airlines operating in Romania, to identify their perception on APG and its impact on the Romanian market.