Why Are Alliances in the Airline Industry Unstable

question 114

Multiple Choice

Why are alliances in the airline industry unstable?

• A) Unstable industries make for unstable alliances.
• B) The potential for firms to take opportunistic actions is too widespread.
• C) The industry is declining and profits are not sufficient to divide among alliance partners.
• D) The alliances require cooperation among firms that must also compete with one another.

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Definitions:

Stethoscope

A medical instrument for listening to the action of someone's heart or breathing.

Physician

A medical professional trained to diagnose, treat, and prevent illnesses, and provide patient care.

Month

A unit of time, typically used in calendars, that roughly corresponds to the period required for the moon to orbit the Earth.

Fontanels

Membranous regions found in the skull of infants; permit the skull to move through the birth canal.