The triangular business relationship among Regional Authorities, Airport and Airlines

Scientific Study from the year 2015 in the subject Economics - International Economic Relations, grade: A+ (1.0 DE), University of Applied Sciences Frankfurt am Main (Faculty of Business and Law), course: MBA Aviation Management, language: English, abstract: This paper evaluates the triangular business relationship among regional authorities, airports and airlines by analyzing the business relationship between the state of Saxony, Leipzig/Halle airport and DHL. The case study under investigation is the relocation process of the European hub of DHL to Leipzig/Halle airport known as 'project Pegasus'. The paper contributes to the existing literature by offering a model of interdependencies of a triangular business relationship and by arguing that constructing interdependencies is crucial for successful and positive business relationships among regional authorities, airports and airlines. The interdependency of each party on its counterparts creates commitment, builds trust and constitutes strong governance mechanism for executing joint investment initiatives. During negotiations, the three parties should incorporate each party's individual strategy into the triangular group's overall strategy, thus achieving a positive end result for future collaborations.