Airlines strive for growth by forming alliances

10/6/2009 | NYTimes.com

After the 2001 terrorist attacks, many airlines were forced to file for bankruptcy or shrink operations as a result of the sharp drop in demand. Carriers faced soaring fuel prices in recent years by adding surcharges and other fees. Now, in an effort to continue growing, airlines are teamed up with other carriers around the world. "You want to be friends with as many people so they don't crush you or try to buy you," said Philip A. Baggaley, a Standard & Poor's airline analyst. Alliances are "superior to mergers, because you don't go through the costs and upheaval of a merger."

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