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The Rise of the Mileage Programs: The Case of Korean Air Alliances
Pages 26 (6526 words)
With facilities of free offers and discounts, and several other associated benefits, the frequent flier mileage programs have become highly common among the airline companies. Records reflect increasing customer satisfaction and loyalty for airlines initiating these programs.
This has led to significant development of airline alliances. Airline alliances or partnerships refer to the concurrence between airlines to work together at a considerable level. Such alliances provide international passengers with a set of connections and conveniences. These airline alliances are also noted to aid in marketing and brand improvement through their connections to other countries. Sky Team is an alliance that consists of Korean Airline, Aeromexico, Aeroflot, Air Europa, Middle East Airlines and Kenya Airways. Sky Team has also adopted the use of mileage program. The passengers have greatly benefited from Sky Team airline alliance mileage program. Largely because of the growth of international tourism and the globalization of economic activities, the demand for air travel among countries across the world has rapidly increased. Vedder notes that there has been a notable increase in passenger traffic over the past few years to and from Korea. Airlines have cooperated and collaborated with their rivals to remain aggressive and mutually grow into international market. It may seem difficult and downright challenging for an organization to make it in a very competitive business industry. In reference to Gossling et al., the process of collaboration is a significant approach to not only reducing risks but also maintaining customer care, brand loyalty and creating brand awareness. ...
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