Abstract

VALENCIA AGUDELO, Germán Darío; TOBON OROZCO, David  and  BECERRA AREVALO, Yiseth Marina. Airline passengers’ loss of well being: the case of Alianza Summa on the Medellín Bogotá route. Cuad. Adm. [online]. 2007, vol.20, n.33, pp.147-179. ISSN 0120-3592.

There are more and more airline carrier alliances used as a strategy to reduce company costs and increase profits. However, this form of organization may reduce well being as well, and particularly the service users’ well being. This paper measures variations in well being that the Avianca, Sam, and Aces airline passengers experienced on the Medellín - Bogotá route, during the operations integration process that took place in Alianza Summa, process that ultimately led to the liquidation of Aces and to Avianca remaining the number one Colombian airline. The use of a contingent valuation methodology and a logistic model led to finding that the main decrease in well being was seen in attributes related to service quality. The paper highlights the importance of studying alliances in distinct markets because distinct social costs (consumer well being and unrecoverable losses in efficiency) must be taken into account in such processes.

Keywords : Airline transportation; consumer well being; contingent valuation; Alianza Summa.

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