Swissair and the Qualiflyer Alliance

At the end of the 1990s routes operated by airline alliances accounted for over half of all passenger air travel and 80% of airline profits. Faced with problems of scale, costs and margins, and with the threat of increased competition by global alliances, Swissair seeks to build its own alliance.

The case raises issues of when and whether an alliance is an appropriate response to strategic conditions; how alliance design and governance may impact on future prospects; and in particular, trade-offs between control, commitment and trust among partners in an alliance with a dominant partner.