Strengthen Alliance
Airlines are suffering because of oil price rise. Today's oil price is about $130. Within one year, the oil price has become almost twice. Therefore, airlines need to find the solutions. Asiana and ANA try to pass by this hardship with expanding joint flight service. The two air carriers currently maintain strategic collaboration in sales, operations, fuel purchase, and crew exchange. The two air carriers have been offering joint flight services on Korea-Japan routes since February last year. The new code-sharing deal covers 100 weekly flights on 10 routes connecting major Japanese cities such as Osaka, Fukuoka and Okinawa. They also bought each other's stocks to strengthen their alliance. ANA holds some 1.2 million of Asiana's shares, about 0.72 percent, while Asiana will has 3.1 million shares of ANA, a 0.16 percent of the Japanese carrier.
Opinion – Synergy
By sharing their assets and buying together, they could attract more people because customers might get satisfaction with expanded choices. When I have been to Japan, I used Asiana airline. One of stewardess was Japanese, but she spoke in Korean and look exactly like Korean. I was very excited and interested about getting service from Japanese in a Korean airplane. They also can save money, since they buy oils together. They can have buying power, when they deal with oil companies.Since world has become globalization, it is necessary to collaborate with foreign companies if necessary. They could have synergies, such as saving money, having bigger markets by sharing their market.
Source: Ko Kyoung-tae, 'Asiana, ANA expand joint flight service', Korea Herald, 2008. 05. 22
http://www.koreaherald.co.kr/
Student #: 20400152 - Entry 11
Airlines are suffering because of oil price rise. Today's oil price is about $130. Within one year, the oil price has become almost twice. Therefore, airlines need to find the solutions. Asiana and ANA try to pass by this hardship with expanding joint flight service. The two air carriers currently maintain strategic collaboration in sales, operations, fuel purchase, and crew exchange. The two air carriers have been offering joint flight services on Korea-Japan routes since February last year. The new code-sharing deal covers 100 weekly flights on 10 routes connecting major Japanese cities such as Osaka, Fukuoka and Okinawa. They also bought each other's stocks to strengthen their alliance. ANA holds some 1.2 million of Asiana's shares, about 0.72 percent, while Asiana will has 3.1 million shares of ANA, a 0.16 percent of the Japanese carrier.
Opinion – Synergy
By sharing their assets and buying together, they could attract more people because customers might get satisfaction with expanded choices. When I have been to Japan, I used Asiana airline. One of stewardess was Japanese, but she spoke in Korean and look exactly like Korean. I was very excited and interested about getting service from Japanese in a Korean airplane. They also can save money, since they buy oils together. They can have buying power, when they deal with oil companies.Since world has become globalization, it is necessary to collaborate with foreign companies if necessary. They could have synergies, such as saving money, having bigger markets by sharing their market.
Source: Ko Kyoung-tae, 'Asiana, ANA expand joint flight service', Korea Herald, 2008. 05. 22
http://www.koreaherald.co.kr/
Student #: 20400152 - Entry 11
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