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Who wins and who loses when airlines form alliances? | Futurity

Passengers who combine two aligned carriers when making an overseas trip will see savings—but those traveling nonstop between international hubs may face higher costs due to lost competition from alliances, a new study shows.

“On the pricing side, alliances have both an upside and a downside,” says lead author, Jan Brueckner, professor of economics at the University of California, Irvine.

The US Department of Transportation commissioned the report, which analyzed international fare trends between 1997 and 2016. During much of this period, three major international airline alliances provided service: Star (United and Lufthansa), SkyTeam (Delta-Air France and KLM), and Oneworld (American and British Airways).

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Who wins and who loses when airlines form alliances? – Futurity.

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