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Strategic Joint Ventures for Clients
US Airways: United Airlines
Successful customer marketing initiative intended to offset common competitive circumstances & unique business pressures from different sources. Both airlines embraced Elliott proposition of (1) reducing Frequent Flyer Mileage liability by jointly offering consumers more destinations, more routes & more flight time-slots .. (2) Countering emerging competitive fragments including a. mutual Labor Relations challenge vis-a-vis Regional Jets, b. New Regional Airlines' expansion and related new startups, and, c. Non-Traditional Block Purchase Resellers -- by employing "bridging solution" that emphasized capacity fulfillment. The Venture Arrangement enabled cost-effective shared infrastructure & aspects of operating execution:, which also concurrently explored mid-level compatibilities for future enterprise cooperation. On a unilateral basis of need -- US Airways principally needed to overcome serious feeder voids from USA Central Region & explore cost-effective sharing broader array of Domestic long haul destinations... United Airlines was keen to capture more share of Northeast an MidAtlantic market activity (direct or indirect) especially trans-Atlantic feed. United also sought to explore a tighter geographic density of destinations believing such an approach by partnership might enable strategic transition of its business toward increased passenger load generation and lower fixed costs with more emphasis upon variable performance-based economics.
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